The Nation Newspaper

Tag: industry

  • Labour seeks probe of automobile industry

    Labour seeks probe of automobile industry

    Members of the Steel and Engineering Workers’ Union of Nigeria (SEWUN) have urged President Muhammadu Buhari to probe the sale of automobile firms by the Bureau of Public Enterprise (BPE), some years ago.

    They are asking for a review of the privatisation process, claiming that due process was not followed in the sale of the companies.

    The National President of the union, Elijah Adigun, in his address, at this year’s Annual Industrial Relations Conference in Ijebu Ode, Ogun State, urged the Federal Government to set up a probe panel  to look into the sale of automobile industries and to determine why the guidelines provided for in the Privatisation Act, to the effect that the controlling shares of these companies should be sold to core investors, was not followed in the sale of these companies by the BPE.

    He insisted that for President Buhari to succeed with his agenda of creating jobs, he should take a second look at the privatisation by BPE, as no company privatised in the iron and steel industrial group is doing well.

    “For instance, Anammco Limited, National Truck, Steyr Nigeria Limited, Leyland Nigeria Limited are companies sold to auto traders instead of core investors who have knowledge, expertise and skills of vehicle manufacturing.

    The labour leader noted that before the privatisation of the auto plants, they had a combined workforce of nearly 7,000 compared to about 300 workers they now have, cummulatively.

    “It will interest you to know that before the privatisation of these auto plants, they had a combined workforce of nearly 7,000 compared with about 300 workers they have now,” he stated.

    “Clearly, the figure here is an indication that the privatisation of these companies has brought economic woes and wastages to the country, rather than the blessing envisaged by the Federal Government. Even salaries are hardly paid to their workers,” he said.

    Adigun, who expressed his union’s support for the Buhari-led administration’s battle against corruption, said it should not be selective and should be extended beyond the last regime to ensure that those who illegally appropriated the nation’s wealth are brought to book.

    He called on the government to grow the economy by exploiting other natural resources to create wealth and generate employment, adding that government needs to look at other areas apart from oil sector.

    The General Secretary of the union, Michael Ogbolu, in his paper, said the theme of the conference, “Survival strategies in an unfriendly environment-the Nigeria experience”, was quite appropriate, given that corruption has brought Nigeria to its knees.

    Calling for urgent attention to rejuvenate the power sector which he said holds the key to the restoration of the manufacturing sector,  Ogbolu expressed dismay that most vibrant factories in the past have been converted to places of worship due to unfavourable business environment.

    He condemned the insurgency in the Northeastern part of the country, which he said has a negative effect on its members’ companies’ volume of trade, leading to the loss of jobs in the sector.

    His words: Our Country which was a lucrative market for P.Z Industry Nigeria Plc, Dagcom Nigeria Limited, Jubaili Brothers Nigeria Limited, J.M.G. Limited and Cummings (West Africa) Limited, among others, has totally lost its share of the market in the region.”

    He praised Buhari for the efforts to remove Nigeria from the list of pariah nation’s and work in synergy with comity of nations to end insurgency in the North East of Nigeria, so that we can live in harmony with one destiny and restore the market volume of our inndustry.

  • ‘Poor road has ruined our cottage industry

    ‘Poor road has ruined our cottage industry

    Communities once renowned for large-scale rice and palm oil production lie in ruins, their businesses comatose. Blame bad road, OKODILI NDIDI reports

    It once felt good to hail from communities fringing the Nnewi-Arondizogu-Okigwe-Enugu Road in Imo State. Residents happily tilled the land, producing such cash crops as rice.

    They also milled palm oil and made a fortune for their efforts. From Lagos, Enugu, Cross River states and the north, many flocked to the Farm Produce Market in Arondizogu in Okigwe Local Government Area of the state to buy their produce. The people prospered and so did the settlements. Life was good.

    Not anymore.

    Why not?

    The 19km Trunk-A road on which patrons trooped to the communities has since failed and along with it, the booming industry.

    But today what reminds the indigenes of those good old days of prosperity and abundance, are abandoned rice farms, failed cottage industries and sad remains of what used to be beautiful travelers’ guest houses and whether –beaten gigantic roofs of filling stations and factories.

    The communities are almost completely deserted, save for some adamant indigenes who are managing to eke a living out of their peasant farming, hoping that one day their plight will draw the attention of the Federal Government.

    Today, the few travellers who still brave the road have tales of horror in the hands of daredevil armed robbers who have turned the once busy highway into a den of terror.

    Now described as one of the worst Trunk-A roads in the country, the Nnewi-Arondizogu-Okigwe-Enugu Road was awarded to different contractors in the past, Doliz Brown Group, who abandoned the project shortly after mobilising to site, dashing the hope of the people each time.

    At different points along the now snaky road, heavy duty equipments belonging to the absconded firms litter the road.

    After years of fruitless hope for intervention, the communities have once again brought their plight to the knowledge of the Federal Government under President Muhammadu Buhari.

    The traditional ruler of Ihieme-Izuogu, Eze Cosmos Ndubuisi Kanu lamented that the state of the road has brought untold economic hardship on the people.

    He said, “We have managed this terrible situation for over fifteen years. Everything in this community has been at a standstill.  We can’t take our farm produce to the market because of the road. Most of the people have abandoned their rice farms and gone to the cities to search for nonexistent jobs.

    “We have 12 autonomous communities along this road that are affected and terrible accidents happen on this road always. It has brought economic and social services to a halt, the few industries and hotels that were flourishing when the road was still good have all closed down. The contractors handling the road in the past have all abandoned it but we are not apportioning blame but we are appealing to President Muhammadu Buhari to come to our aid and fix this road, given its importance”.

    He continued that, “We are agrarian communities and we cultivate rice in commercial quantities but since the road collapsed, we are no longer cultivating that much because we don’t have road to take them to the market. This important Trunk-A road connects six states in the Southeast and Southsouth geopolitical zones”.

    Another indigene, Mr. Uche Ohia, a legal practitioner and rice farmer, called for urgent and drastic intervention on the road, stating that the state of the road has forced out young farmers who could have been contributing to providing the food need of the nation.

    A portion of the road washed away by erosion
    A portion of the road washed away by erosion

    He said, “we have lost millions of naira to the collapse of this road, the level of impoverishment among the people is very high because no business can thrive under the present situation. The economy of the communities has totally collapsed, it is indeed a terrible situation.

    “This situation is not encouraging most of us who returned home to invest in agriculture. For instance I have a large palm plantation and for almost last two weeks now I have been looking for means to transport the harvest fruits to the market and they are beginning to get bad.

    “One other major problem created by bad road, is the increase in criminal activities. There is high rate of vandalization of electrical installations by vandals who operate unchallenged at night because no one dare move out once it is night. It gets even worse any day it rains. We are appealing to the Federal Government to order the contractors handling the road to return to site or revoke it and award it to a more committed firm”.

    Another angry indigene and a banker, Dr Ikenna Uche, noted that the contractors handling the road contributed to its present state, adding that, “the contractors destroyed the road totally by abandoning it after excavating deep boroughs on the road and this has resulted in flooding and serious erosion. This road used to be the shortest route to Lagos but our people now travel to Onitsha or Owerri before going to Lagos.

    “Our people don’t come back home anymore because of the bad road. Those of us that manage to come leave our cars in Owerri and ride on okada, which is very dangerous. We are appealing to the relevant authorities to come to our aid and I can assure you that once this road fixed the economy will bounce back and all the collapsed industries will be revived because our people are willing to invest at home.

    The abandoned federal road
    The abandoned federal road

    “Another area of serious concern is that the total collapse of the road has also affected the state of other social infrastructure like school, market, health centers, electricity and pipe borne water. All these have either ceased to exist or are in very poor state because the communities are cut off by the bad road”.

    Apart from this particular road, other Federal roads in the state have equally collapsed. The Owerri-Port Harcourt and the Owerri-Umuahia roads have also been abandoned and are currently in a terrible state of disrepair.

    Speaking on the development, the Chief of Staff to the Imo State Government House, Chief Uche Nwosu, decried the state of the roads, adding that in the last four years, the state government has spent huge sum of money carrying out palliative repairs on all the Federal Government roads in the state.

    He however assured that the situation will not remain the same under the President Muhammadu Buhari led administration, noting that, “the situation of the Federal Government roads in the state will not remain the same because the Governor has already taken it up with the President but that does not mean the state will not continue to maintain the roads because the common road users does not know the difference”.

    Proffering solution to the problem, Nwosu suggested that all Federal Government roads in every state should be managed by the state but financed by the Federal Government.

  • Don seeks relief package for livestock industry

    As the livestock industry faces a critical situation with many farms nearing bankruptcy, a former Dean, Faculty of Agriculture, University of Ilorin, Prof Abiodun Adeloye, has called for increased government’s financial support package to save the industry.

    While the cost of animal feed has risen relentlessly, farmers said demand for poultry products has slowed down. As a result, many farmers are virtually bankrupt.

    He said livestock producers were feeling the pinch as prices of corn, soybeans and other livestock feed go higher.

    Livestock feeders are looking at severe losses never before experienced in the livestock sector.

    Adeloye urged the government to help struggling farmers cope with disease outbreaks, falling prices, and lack of resources.

    According to him, there is a need for a tripartite links between livestock farmers, feed suppliers and banks to help the livestock sector solve long-lasting problems such as increased input costs, unstable prices and outlet for their products.

    The livestock sector, mostly consisting of small-scale household farming, outdated techniques and a shortage of investment for farming, has been experiencing a difficult time as farmers struggle to access loans and attempt to conform to environmental protection regulations.

    Adeloye said financial shortages were a major problem for farms.

    He asked the banks to offer farmers loans with preferential interest rates.

    According to him, the livestock industry is critical to the economy because it provides food to Nigerians.

    He said demand for food would increase over the next decade due to population growth and increased business activity.

    He said the need for livestock would rise in keeping with the trend.

  • Fight corruption in construction industry’

    Members of the Southwest chapter of the National Association of Quantity Surveying Students (NAQSS) have urged President Muhammadu Buhari to fight graft in the construction industry.

    They made the call at the end of the association’s congress at The Polytechnic, Ibadan (IBADAN POLY).

    In a statement signed by their President, Eniola Ayodele, and other officers of the association, the students hailed the Nigerian Institute of Quantity Surveyors (NIQS) for its effort to protect the ethical standards in industry.

    The statement reads: “It is imperative that quantity surveyors are engaged to monitor implementation of contracts from the procurement stage to the completion stage in the ministries and agencies if the government must fight corruption in building industry. This is why we call on President Muhammadu Buhari to engage building professionals in the fight against corruption in the construction industry.”

    The students urged quantity surveyors to stem the rate of building collapse in the country, lamenting that lives were being lost through the incidents. The association said it was concerned about the state of infrastructure and cases of abandoned projects.

    The students expressed displeasure on what they called poor standard in  quantity surveying teaching in higher institutions, saying students must be equipped with practical knowledge and research.

    The statement added: “We call for review of curriculum used in teaching quantity surveying in higher institution. Teaching must focus on building manpower for construction industry using innovation and modern, tools that will enhance prestige of the profession. It is important quantity surveying students are given the opportunity to engage and compete favourably with their counterparts worldwide. We, therefore, demand change of syllabus and access to grants to aid research works that will benefit students and lecturers.”

  • Key challenges of Nigerian Pension Industry and possible solutions (1)

    Nigerian Pensioners have high expectations on the new Government to ensure an effective implementation of pension regulations existing in the country. These expectations arise from the need to have sustainable standard of living in retirement and their benefits paid as at when due.

    The different pension regimes operating in Nigeria, Defined Benefit (DB) and Contributory Pension (CPS) Schemes, give rise to varying set of problems that limit the capacity of key stakeholders within the Nigerian pension industry to meet pensioners’ expectations.

    This paper highlights the key challenges facing the stakeholders in the pension industry and the possible solutions from an actuarial perspective. In broad terms, the challenges arising from different areas of pension management include but not limited to the following: Transitional Pension Management, Guaranteed Minimum Pension, Additional Voluntary Contributions, Pension Protection Fund, Investment Guidelines, Public Education and Enlightenment.

    Transitional Pension Management

    Key Challenges

    The current problems that beleaguered pensioners from Pay-As-You-Go (PAYG) defined benefit (DB) scheme in Nigeria (which have always been to the fore) include, inter alia:

    • Delayed or non-payment of pension entitlements and misappropriation of existing pension funds.
    • Low standard of living (or high poverty incidence) among pensioners due to pension increases not in line with salary inflationor no pension increase at all.
    • Too frequent verification of pensioners by Pension Transitional Arrangements Directorate (PTAD)(section 42 of PRA 2014) leading to pensioners dying during verification exercises.
    • Inadequate Enforcement of Pension Regulation– Over 10 years of existence of CPS, not all State Governments had enacted their pension Laws to establish CPS which is a sign of regulatory weakness. The actuarial valuations of the old DB schemes required by PENCOM at the point of implementation of the new CPS have not been carried out even for those State Governments that have already established their CPS.

    Possible Solutions

    The establishment of PTAD and various penalties for pension funds mismanagement introduced by PRA 2014 would address some of the lingering challenges of pensioners in the public service pension administration in the country.

    However, below are other ways to address the problems described above:

    • Create pensioners’ biometric database that is suitable for future actuarial valuation, demographic and financial projections, which would also eliminate ghost pensioners.
    • Adopt a pragmatic approach to pensioners’ biometric verification process (a system of self-verification by pensioners capable of automatically updating the pensioners’ database) having conducted an initial face-to-face verification in order to minimize the frequency of subsequent face-to-face verification exercise.
    • An automation of pension/gratuity calculation and payment system to ensure that pension increases are implemented on a timely basis relative to increase in workers’ salaries and also allowing pensioners to receive their pensions/gratuities as at when due. The Integrated Personnel and Payroll Information System (IPPIS) for the Federal public service should be emulated at the State and local Government levels,
    • A periodic actuarial valuation of the old DB pension scheme as required by law needs to be carried out in order to ascertain the value of the pensioners’ liabilities at a given date as the scheme runs off. This will enable a realistic annual pension budget estimate to be made for the Government(s) which will reduce the insufficient funds being allocated for pension payment. This would help in the administration of PTAD in minimizing the delays and arrears in pension payment.
    • PTAD should set up a realistic pension stabilization fund (to be invested) with the primary aim to stabilize the pension/gratuity payment system which is always in arrears. This will ensure that money is readily available to pay the arrears of pension liability.

    In summary, the relevance of professional actuaries and information technology experts cannot be ignored in the implementation of the above suggested solutions.

    Guaranteed Minimum Pension (GMP)

    Key Challenges

    The guaranteed minimum pension (GMP), which will be specified from time to time by PENCOM, is a provision for protecting all retirees who have not accumulated enough to have a decent standard of living in retirement (Section 84(1) of PRA 2014). Thus, it is anincome support from the government, which can act as a safety net for pensioners.

    The modalities for implementing GMP are yet to be finalized by PENCOM for more than 10 years of its existence. This may be due to the computational complexities involved in determining the GM that require actuarial techniques which might not have been considered important.

    Possible Solutions

    The assessment of the level of GMP including the cost of guarantee requires stochastic modelling techniques, a task under the control of an actuary whose services PENCOM should obtain on a regular basis.

    Additional Voluntary Contributions (AVC)

    Key Challenges

    There is lack of valuation of an individual member’s DC plan (individual projectionsof likely pension benefit at retirement) by PFAs with a clear objective to measure sustainable retirement income (using metrics such as replacement ratio which represents a sensible estimate of the standard of living in retirement) before allowing an individual to make his/her choice of AVC. The concept of replacement ratio provides an effective connection between the accumulation and de-accumulation phases of a DC plan member’s life cycle.

    With the exception of tax benefit, there is also no incentive for additional savings (AVC) towards retirement, particularly where there is a GMPto be funded by the Government. Thus, there are relatively small RSA balances of some retirees pending the implementation of GMP. This results in a growing sense of disenchantment with the token monthly pension benefit being received by pensioners under the new CPS relative to the huge gains (from investment returns and dividends) the Pension Fund Administrator (PFAs) are currently making.

    The above arises from the expectation that all returns on invested funds belong to contributors (employees) except for the minimal fees/chargesexpected for the pension operators. The lack of frequent review of fees/charging structure (including the stipulated fees by PENCOM representing the maximum amounts) chargeable by operators and possible non-disclosure of hidden charges, interests and commissions accruable to pension assets might also be the cause of above dissatisfaction.

    Possible Solutions

    The fees/charging structure needs to be constantly reviewed by PENCOM in order to eliminate any hidden charges in order to increase the RSA balances.

    There is also a need for sensitization of potential benefits to workers in making AVC having considered the expected living standard in retirement.

    • Dr. Pius Apere (PhD / FCII) is Deputy Managing Director

    Linkage Assurance Company PLC

  • Expert seeks restructuring of livestock industry

    A consultant  to the  World Bank, Prof  Abel Ogunwale,  has urged  the restructuring  of  the  livestock industry in a sustainable and competitive manner that will lead  to economic  growth.

    Ogunwale, who is of Faculty of Agricultural Sciences, Ladoke  Akintola University of Technology, Ogbomoso, Oyo State,  said the industry   needs  a major policy  shift  targeted at small farmers  and those  engaged in commercial livestock agriculture.

    He  urged the  government to  improve access  to fund in order  to  encourage  farmers  to move  from small-scale to large-scale farming. He said favourable government policies were needed to support animal-husbandry enterprises so they can have sufficient capital and engage in technology transfer.

    While there have been focus on improving crop production,  Ogunwale said  the government should  direct its action to  strengthening animal health systems and  the whole livestock value chain. This, according to him, would lead to sustained income of farmers as well as improving general nutrition for animal products.

    He urged the government  to  support  the  livestock and veterinary services to procure vaccines and  enable  farmers access to better  animal health services.

    In the absence of  financial resources and technical expertise, he said the sector has not experienced  growth, while the  operating    condition has  remained challenging  for farmers.

    Farms, he said, should be restructured  so that productivity and quality could be improved.

    He called for support for research in livestock  production that would lead to an improvement in quality and productivity, while increasing the income of farmers.

  • Govt urged to monitor oil, gas industry

    The Managing Director/CEO, Oilflow Global Energy Limited (OGEL), Noah Yakub has called on the federal government to give a close monitoring to the oil and gas industry in Nigeria, saying such is needed for any form of growth to be recorded in the industry.

    Yakub, who spoke in Lagos, said there is need for periodic financial audit reports, noting that regular meetings with stake-holders where lapses can be established and consequently ironed out, will also be needful.

    He said for any headway to be made in the industry, a lot still has to be done to enhance capacity building, technical and financial growth, especially among Nigerians, having been given the privilege to operate under the Nigerian Local Content Act.

    “At OGEL, we are already sailing on the present state of the business environment to actualise our mission towards the global industry growth. With an improved environment as promised by the current administration we shall sail smoothly.

    “We have our strategies to operate in the industry. The most important strategy that we put up, is an integration of integrity and performance. With our performance, we also delight our customers with performance icing,” he said.

    He pointed out that when technical manpower is supplied, a system is put in place, such that “when they are on vacation, or they are on time off, we develop them by giving them a particular training established as relevant to their field.

    “We also have a structured system that recognises and appreciates talents and job performance accuracy. Besides, we also strategise by giving them relationship training in the sense that we train them on how to mix with people that they are not familiar with, how to mix with their bosses, peers and work environment so that they can have a sense of understanding. That is just a few out of the lots of our business strategies,” he said.

    Yakub, praised President Muhammadu Buhari for his selection and placement procedure, especially on the recent appointment of Dr. Emmanuel Ibe Kachikwu as the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), describing it as a perfect example of putting a round peg in a round hole

  • Reviving Nigeria’s ailing textile industry

    President Muhammadu Buhari’s good resolve to create three million new jobs in the textile industry is a positive development that deserves the support of all well-meaning and patriotic Nigerians. As a stakeholder in the Cotton, Textile and Garment (CTG) sub-sector of the economy, I am assuring fellow Nigerians that the CTG sub-sector alone is capable of creating more than one million new jobs if all the right things are put in place, especially if there is political will on the part of both the executive and legislative arms of governments at all levels as well as the determination, sincerity, patience and commitment of all stakeholders.

    I want to advance some measures that can be applied to achieve desired goals. To ensure the success of President Buhari’s motives within a short period, institutions such as the Nigeria Customs Service, Nigeria Immigration Service, Central Bank of Nigeria, Economic and Financial Crimes Commission, and the Independent Corrupt Practices and Other Related Offences Commission should forge a formidable team to promote and protect the sub sector the same way a mother guards and protects her child. A team work on the part of aforementioned institutions will ensure elimination of faulty documentations, money laundering, dumping of sub-standard textile materials as well as foreigners doing business in Nigeria with visiting visas or with fake entry documents.

    Also, the Presidency should pursue the principles of African Growth Opportunity Act of the United States with vigour. Opportunities abound for Nigeria in AGOA regarding garment production, which can guarantee employment of more tailors and continued patronage of students in departments of tailoring and fashion design in our tertiary institutions. This can equally bring about an increase in the establishment of small and medium scale industries such as zip making, buttons production, elastic and packaging industries, among others. Patronage of state governments to the sector will mean the same as above as well as increase in competitiveness in schools sports programmes and ensure local products are patronised.

    For the desired result to meaningful, the President will need to declare a National Textile Day. This will be a once a week, non-ceremonial, but action packed day whereby all political office holders, appointees and other public office holders in the country will dress in home-made textile attires that are culturally popular and patronized in their section of the country.

    If this noble gesture is backed with a legislation that bans the importation of all categories of ready-made clothes on commercial basis, it will make our tailors to perfect and be competitive in production of garments at international standard, thereby ensuring self-reliance in garments as well as conserving foreign exchange. This will attract foreign investors to the sector and bring about financial control, development and strengthening of the sector. The proposed legislation should promote, develop and protect the sector by limiting the importation of textile fabrics that could not be produced in Nigeria now to 70% and production of 30% by Nigerian textile manufacturers. The legislation for importation of textile materials should require presidential approval and only from countries willing to invest in Nigeria’s textile sector. Part of the legislation to patronize made-in-Nigeria textiles and garments by all private and public institutions should be extended to school uniforms, sports wears, school house vests, hotel toiletries, bathroom napkins, towels, hospitals cotton wools, bed sheets, mosquito nets and blankets. All these can be sourced locally if the political leadership is willing to walk the talk. As an incentive, black oil allocation (LPFO) should be made directly to textile manufacturers at affordable price.

    I also propose that one spinning and ginning plant be established in each of the six geo-political zones i.e. Funtua in the North-west, Gombe in the North-east, Nassarawa in North-central, Oyo in South-west, Asaba in the South-south and Aba in the South-east to serve as a springboard or back up project for the success of cotton, textile and garment development projects. This is also to ensure that medium scale textiles and garment factories spring up across the nation with easy availability of yarn, since spinning industry is highly capital intensive, and it is the backbone of any textile fabric. This is realisable with the constitution of a new CTG revival committee that will be peopled with real stakeholders who will be responsible for designing the revival, production, marketing and sound planning for the CTG sub sector. A good way to start is for the committee to draw its membership from the Nigerian Textile Technologists Association, Nigerian Textile Manufacturers Association, representatives of Garment Manufacturers, Cotton Farmers and Merchants, the Nigeria Customs Service, Nigerian Raw Materials Research Council, among others.

    Finally, there is the need to have a thriving textile council whose main task is to oversee the registration and accreditation of bodies for the training of textile professionals in the country. A textile competency centre should also be established in the National Research Institute of Chemical Technology (NARICT) ABU Zaria, for the continual training of the professionals. And tertiary institutions that have programmes in textile science, engineering, technology and art should be adequately funded and consulted on issues affecting the industry. If all these are given prompt and adequate attention, I have no doubt in my mind that Nigeria’s ailing textile industry will be revived within a very short time so that it can unleash further opportunities for millions of Nigerians.

     

    • Adhama (MFR, FTTN) is founder of Adhama Textiles and Garment Industry, Kano.
  • ‘Nigeria needs N137b to revive textile industry’

    ‘Nigeria needs N137b to revive textile industry’

    The committee on resuscitation of cotton, textile and garments set up by the Federal Ministry of Agriculture and Rural Development (FMARD) yesterday said Nigeria needs N137.2billion to revive the textile industry.

    The Ministry had on 13th July set up four committees on the operationalisation of Federal Government’s Storage and Agro Processing Facilities; Resuscitation of Cotton, Textile and Garments; Strategic Action Plan for the Development of Grazing Reserves and Stock Routes Nationwide and Revitalisation of Agricultural Extension Services in Nigeria with terms of references.

    The committee in a document presented to the Permanent Secretary of the Ministry, Sonny Echono, in Abuja, advised the Federal Government to inject N137.2 billion into the sector between next year and 2019.

    It stated that N100 billion meant for cotton, textile and garment sector was domiciled with the Bank of Industry (BoI), urging the government to make the funds available for use.

    Chairman of the committee, Damilola Eniayeju said this would effectively serve as working capital that will assist in the retooling of operational textile mills, as well as resuscitate about 80 closed mills and 23 ginneries that had been shut down across the country.

    He said: “The proposed N37.2billion should be used to support all sections of the cotton, textile and garments sector.”

    Eniayeju emphasised the need for improvement of cotton production through financial support for the Institute for Agricultural Research and recommended financial support for the National Biotechnology Development Agency to enable it deploy biotechnologically improved cotton at confined fields at trial levels.

    On cotton seed multiplication and seed supply, the committee chair recommended a virile and systematic breeder foundation and certified seed regeneration system, while mandating the National Agricultural seed Council (NASC) to always certify and regulate the cotton seed industry.

    On seed marketing, it urged the FMARD and Ministry of Trade and Investment (FMITT) to work closely to establish the Cotton Corporation of Nigeria (CCN) to revive Cotton Production and Competitiveness.

    Also, the committee on Grazing Reserves and Stock Routes Nationwide called for the establishment of a National Programme on Grazing Reserves and Stock Routes development; strengthening of existing conflict resolution and prevention mechanisms.

  • NAICOM worried over industry knowledge gap

    •CIIN commissions college of insurance

    The knowledge gap in the insurance industry remains high just as professional indiscipline, Commissioner for Insurance, Fola Daniel has said.

    He made this statement at the inauguration of the Chartered Insurance Institute of Nigeria, (CIIN) Insurance College located at the Lagos/Ibadan Expressway, Ogun State.

    The NAICOM boss who said the commission is concerned, said the situation is totally unacceptable.

    He said the situation calls for a cllective effort if the industry is to attain the  professional height and standards we all crave to enable the industry occupy  its rightful position in the  financial services sector.

    He said: “As a prudential regulator, the quality of and technical capacity of insurance practitioners in the country is a major concern to the commission. We will continue to support efforts at ridding the profession of indiscipline while entrenching a culture of professional discipline and adherence to rules and ethical standards.

    “It is our desire in NAICOM to superintend over an insurance industry that is flourishing, financially strong and viable but with the right mix of professionals.”

    This notwithstanding, Daniel said the inauguration of the College of Insurance marks a watershed in the history of not just the Institute but the entire insurance sector.

    “This landmark accomplishment symbolises growth and key to future accomplishment. The CIFMS is a value addition to the quest to better position the CIIN in the industry and, herald a new era of improvement on services rendered by the institute not only for its future growth, but more importantly, for the growth and development of the Nigerian insurance sector practitioners.

    CIIN President, Bola Temowo, said the commissioning follows four years of giant strides in actualising their dream of a college, conceived to change the face of insurance and financial management education in Nigeria.

    He explained that prior to the commissioning, so much had been put in place to justify the development of a full-fledged college.