The Nation Newspaper

Tag: Local

  • Local E&P firms produce about 180,000 bpd

    Indigenous oil exploration and production (E&P) companies produce about 10 per cent of the total national output – between 180,000 and 200,000 barrels per day of oil (bpd), Chairman, Society of Petroleum Engineers, Nigeria Council, Dr Saka Matemilola, has said.

    Matemilola said the jump in oil production by local E&P firms was due to Shell’s divested interests in some juicy oil blocks. Shell and co-venturers, including Total and Agip, divested their 45 per cent interests in over seven oil blocks and they were acquired by local firms.

    He said the firms included Seplat, Oando, Aiteo and others, adding that some companies produce on the average, 10,000 – 70,000 barrels per day.

    He said the oil fields bought by local firms from the International Oil Companies (IOCs) were active, strong and boast of huge potential.

    In an interview with The Nation, Matemilola said local oil companies produce about 180,000 barrels of crude oil per day, adding that the figure represents between eight and 10 per cent of Nigeria’s total oil output.

    He said the divestments of shares by IOCs have paved the way for the emergence of local oil companies, noting that the development has enabled locals to perform big-ticket transactions.

    Matemilola said: “The divestment is a blessing in disguise for the industry. Without the divestment, indigenous oil companies would not have been able to adequately explore for oil. Now, local firms participate in that area, hitherto regarded as the exclusive preserve of oil majors in Nigeria.

    “The assets that were taken over by local operators are producing well. The performance of those assets have been either doubled or tripled by the indigenous oil companies that bought them from the IOCs. This is an indication that when local operators are given the opportunity, they would do well. When opportunities in the nation’s oil and gas sector increase, it is a plus for the economy.”

    According to him, divestment has opened doors for local oil companies, adding that the development has enabled them acquire technology and expertise needed for oil exploration. He said no organisation can lay claim to technology, adding that both local and foreign can now boast of technology that is highly sophisticated in the industry. He said the local companies can operate well without expatriates.

    “How many expatriates are in Seplat, Aiteo and other local oil companies? We seem to underestimate the capacity and technical know-how of Nigerians, which should not be the case. I have been in the industry for over 20 years now and I can tell you that some of the best technocrats in the nation’s oil industry are Nigerians.

    “Unfortunately, we do not give credit to ourselves, just because of the way in which past leaders have mismanaged the country’s resources. Just look around some of the companies, which bought the assets of the IOCs, how many expatriates do they have?” he asked.

    He ruled out competition between the local firms and IOCs in crude oil exploration, adding that there is no basis for the two groups to compete with each other. He said experience has shown that IOCs are rooted in oil exploration activities, adding that it would take local firms some time before they could match the records of foreign owned oil firms.

    Matemilola, who is also the Chief Petroleum Officer with First Exploration and Petroleum Development Company Limited, advised local oil firms to look for areas where their core competences are, and leverage them for growth instead of thinking of how to compete with the majors.

    “It would be better if each entity defines the area where it is going to play and what level it would play in the industry than trying to compete with one another.  The issue is about how to manage the available resources and not competition.  When a firm, for instance, masters its area well, it would be easier for the firm to achieve growth in that area,” he added.

    He explained that the oil and gas industry is wide and can accommodate many players who are ready to put resources and money together in order to encourage growth, adding that this is the trend globally, which oil companies in Nigeria must follow.

  • Dairy industry: Local raw milk to the rescue

    Dairy industry: Local raw milk to the rescue

    A Dairy Development Programme (DPP) aimed at cutting the nation’s huge import bill and also create jobs is on course. The programme supports local sourcing of raw milk  by engaging and training Fulani milk producers and potential smallholder dairy farmers. Assistant Editor CHIKODI OKEREOCHA reports that the model could be the wedge for the economy in recession, if more players in the business come on board and infrastructure are provided.

    The Research & Development (R&D)/Dairy Development Manager, FrieslandCampina Wamco Nigeria Plc, Mr. Lawrence Inegbenoise, is upbeat. He is expectant that the company’s cooperation talks with academic institutions in The Netherland in knowledge-sharing and exchange programme with Nigerian dairy farmers would boost the transfer of technology know-how on milk production and expand its on-going Dairy Development Programme (DDP).

    At the behest of FrieslandCampina Wamco Nigeria Plc, dairy producer, two dons from The Netherlands, Imke de Boer, a Professor of Animal Science, Wageningen University, and Managing Director, Wageningen Academy, Janine Luten, were in Nigeria recently to explore the possibility of transferring skills to assist local dairy farmers on best practices for improved yield.

    “Fulani cows are local breeds so, we have brought in experts to train them on how to cross-breed with the local cows, which can produce 500 litres of raw milk, while cross-breeds can produce 1,200 litres,” Inegbenoise explained, exuding confidence.

    He spoke while conducting reporters and experts from The Netherland round the company’s dairy development facilities in Oyo State.

    FrieslandCampina Wamco Nigeria Plc, makers of dairy brands such as Peak Milk, Three Crowns, Friso, among others, has been pushing a DPP since August 2010. The Private-Public Partnership (PPP) initiative was aimed at developing the local dairy industry by creating a sustainable raw milk value-chain that contributes to food security through provision of quality dairy nutrition to Nigerians as well as providing jobs.

    The company is the only dairy manufacturer sourcing part of its raw milk requirement locally. It has invested over N4 billion on the project so far. The scheme  draws its strength partly from the Federal Government’s backward integration policy, which encourages building capacity in local manufacturing to significantly reduce imports and create jobs.

    Under the DPP’s sustainable raw milk value-chain, Inegbenoise said that Fulani herdsmen constitute the first leg of the empowerment programme under which they are trained to ensure they get the best quality milk for FrieslandCampina. The herdsmen are supported through consistent trainings and demonstrations to upgrade their milk supply in terms of quantity and more importantly, quality.

    They are also trained in the use of crop residues and fortification as sources of good feed to cattle. Also, feed preservation through silage and hay making are demonstrated, while crossbreeding through artificial insemination was carried out.

    The second leg of the empowerment is the smallholders’ concept, where graduate farmers are engaged and put in clusters of ten and supported to become more productive. They are allowed to share infrastructure such as farming implements, power and feeds, while the third group are the cooperatives, conceived in the mould of the Dutch parent company Royal FrieslandCampina dairy cooperative concept.

    The Nation learnt that the parent company is owned by 19,000 dairy farmers drawn from over 13,000 cooperatives. The cooperatives, Fulani herdsmen and smallholder dairy farmers also benefit through the opening up of markets for them. “We have made good progress in the area of networking of milk suppliers,” Inegbenoise said.

    While the company continues to invest in the maintenance of its facilities: the Milk bulking Centre in Iseyin and four functional Milk Collection Centres (MCCs) in Fashola, Alaga, Maya and Iseyin in Oyo State, it has been able to receive at least 21, 000 litres of raw milk from its local supply chain.

    FrieslandCampinaWamco Nigeria PLC Corporate Affairs Director, Mrs. Ore Famurewa, explained that although, the company started by buying raw milk from Zimbabwean farmers in Shonga, Kwara State, and bringing it to its factory in Lagos for production, it soon realised that this was not enough; that it was better to get Nigerians, the local Fulani farmers to milk cows for it.

    At the last count, over 1, 600 (920 women and 726 men) Fulani milk producers and potential smallholder dairy farmers have been engaged and trained. According to Famurewa, the knowledge sharing and exchange programme with The Netherland’s experts was a continuation of the development of the local milk production capacity in Nigeria.

     

    Boost for local content

    Famurewa said the company believes strongly in supporting local content wherever it operates and that it has made significant progress in the development of local milk production in Nigeria. She said although, the company targets 10 per cent local content in raw milk production every five years, it is currently doing three per cent.

    “We plan to meet 10 per cent local content contribution in the next five years, but it has been very challenging. We have signed a Memorandum of Understanding (MoU) with Federal Ministry of Agriculture and Rural Development to support us in our DPP. Presently, we are at three per cent because dairy development is a gradual process, but for us, slowly and steadily, we would surely win the race,” Famurewa said.

    Through the programme, the company may have also assisted government to address the grazing challenge in the country. Famurewa admitted this much when she said that smallholder farmers are beginning to explore inside grazing while cross-bred animals are being invested in for higher yields. “A lot of people in the country have complained about Fulanis going into their farms to graze, causing mayhem, but overtime we have been able to reduce this menace in Oyo State,” she said.

    The DDP may have also addressed the challenge of ageing farmers across the country, the scarcity of natural resources and the fast growing population. “We believe the way to address these challenges is having DDPs across all our regions. If you want to be sustainable, you must take care of the growing population, the issue of aging farmers and you must ensure managing resources well,” Famurewa said.

    While pointing out that if Fulani are allowed to continue moving around, land will still be a problem, she said if the company is able to gather them in a small dairy concept idea then it is possible to solve the problem of land.

    “In a small land you can get more milk because the more the cattle treks they would not be able to produce because they have trekked all their energy whereas cows that are stabled like in the Netherlands, they relax, they are very big, very fresh and happy. They also produce 40 liters of very good milk per cow per day,” she said.

     

    Cutting dairy products’ import bill

    Experts and operators in the dairy industry estimate Nigeria’s import bill for dairy products to be about $1.3 billion yearly. From an estimated total value of $336 billion in 2014, the dairy industry, which entails cattle raring for milk production and all the associated manufacturing processes from the farms to the tables, is projected to hit $442 billion by 2019.

    The thinking is that with the on-going diversification agenda and the push for industrialisation to mitigate the effects of the current economic recession, an initiative in the mould of the DPP could not have come at a better time. For one, it would help slash the nation’s huge import bill for dairy products, while also helping Nigeria claim a share of the $442 billion dairy business by 2019.

    However, for this happen, more players in the dairy business must come on board. Listen to Famurewa: “Other dairy companies can come in or borrow a leaf from us by investing in sustainable business model. We have done what we want to do in Oyo State, but we are not resting on our oars. We plan to extend it across the country because dairy development should be a national thing.”

    Although, the management of the dairy producer recently met with President Muhammadu Buhari and pledged its support for the government and also got endorsement as the preferred partner for dairy development in Nigeria, supportive infrastructure remains key to the success of the initiative.

    Imke de Boer puts it in perspective, saying that for the local dairy industry to grow infrastructure development especially in rural areas is key especially access roads in farming communities.

    Noting that it would be difficult to compare dairy development in the Netherland to Nigeria, which FrieslandCampina has just kick-started, because of difference in climate, she described the DPP as “a very good start”.

    “We came to find out which areas to share our knowledge and expertise to further develop the project. We can’t bring our knowledge to Nigeria and the African society without first understanding what’s on the ground,” de Boer said.

     

    Quality takes centre stage

    It’s FrieslandCampina’s emphasis on quality that earned it the Federal government’s endorsement as preferred partner for dairy development in Nigeria. First, the raw milk come in 10 and 20 litre special aluminium flasks distributed free to the farmers by the company.

    According to its Milk Collection Manager, Mr. Adekunle Olayiwola John, the special flasks, unlike the calabash, are more hygienic, enabling dairy farmers to get the milk to the MCCs in good quality.

    While the Fasola MCC has 7, 000 litres capacity, but collects 5, 200 litres of milk per day, Maya MCC has 12, 000 litres capacity. John said each MCC is equipped with cooling systems that guarantee quality and standard. This is because unlike some crops that can last for a day or two, milk is time sensitive and could get bad in two hours if it is not treated.

    Hear him: “We ensure that within two hours after milking, it should get to our collection centre for test. The challenge is actually at the farm level where you have to be sure that the milk doesn’t contain antibiotic. So we have experts on ground to train the farmers on hygiene and everything they need to know about how to handle cows and milk. So we have tackled quality from cows up till the transporters. Farmers even know when the milk is good or bad.”

    The Milk Collection Manager added that as part of quality control, rapid test is conducted on the milk for adulteration, antibiotic and coloration test right at the collection centre. “When accepted it is poured into the tank for processing and sent to the Bulk Collection Centre in Iseyin, where the milk is lifted to Lagos every three days,” John said.

    He, however, said if the milk coagulates in the process of testing, it means it is not fresh and it is rejected. “If they (farmers) bring milk of three days, we can detect it through test and reject it,” he said, noting that because of strict quality control measures, milk rejection level, which was as high as 7.5 per cent per day when the company started, has reduced to 1.2 per cent per day.

  • ‘How rise in dollar rate improves local content’

    ‘How rise in dollar rate improves local content’

    Mojisola Opasanya is the MD/CEO of MO Daises, a T-shirt making and customizing outfit. A former manager with the  Nigerian Breweries, Opasanya speaks with ADEWOYIN ADENIYI about the positive aspects of the rise in the rate of the dollar and other issues. Excerpts:

    How long have you been into printing and design business?

    We just started it last year. In that one year, we have actually worked for a lot of multi-nationals, and right now you know the situation of dollars so people are actually looking at the local content. More productions are happening within the country.

    And not just T-shirts, we also customize anything you want including mugs; we do all manner of printing. Our unique selling point is that we source directly from factories in and out of Nigeria, because for companies, you have to match their phantom colours . You give us what you want and we match your phantom colour, you don’t have to make do with what you don’t want. We can also come up with designs to be unique for you and your company alone so you don’t have to have a general design.

    In what ways is the rise in the rate of dollars affecting your business?

    Well, there are two sides to a coin. The positive side is the fact that people are now looking inward because it is difficult to get T-shirts. People are importing and sometimes it’s very tough to get and when you get, it its expensive. I’m not saying that ours is cheap either but when you get it, it’s expensive, and it might not even suit the colour that you want. It has helped in such a way that it’s bringing more customers. Ordinarily, companies that wouldn’t want to produce in Nigeria are now being forced to go with the option of the local content and these are companies that in the past would tell you, ‘no we don’t want Nigeria; but now they are just left with no option but to produce here in Nigeria.

    But on the other side, there is no market that operates on its own, when you go to the market to buy the things that you need they are also very expensive that’s why I can’t say it’s cheap on the side either because prices of materials keep going up.

    Does that mean you get all your materials in Nigeria?

    I have my contacts in China where I also go for exhibitions, so I can source for materials in China as well as here in Nigeria but you really can’t determine your dollars rate. If I give you a quotation this morning and by the time I go to get things done, dollar might have gone twice higher but you have signed on that so it’s not your business how I get it that’s why people are playing it down on the importation part of things because you can’t afford to be caught in that.

    There is a local company that produces thread in Nigeria but once dollar increases by one naira, they increase by hundred naira, dollar increases by ten naira they increase by five hundred naira. Another thing that has affected us is the gas pipeline explosion that has been going on because they use gas for production and for like two to three months now it was really tough but we thank God now they are using black oil and that also resulted in price increase.

    This is a year down the line and you are doing well in your chosen line of business, what inspired this business? Were you into tailoring before?

    As a Christian, I put God first in everything because that’s the only way, especially when it comes to life decisions. Things like your career and what you do are very important to be brought before God. I was actually a manager in Nigerian Breweries, I resigned and after my resignation I knew I wanted to be on my own not to look for another job and that was why I resigned to start my own even though I wasn’t sure what I wanted to do but I started with branding.

    After retirement, I got my office and said we are going to start doing this, you will see that this is an industry where we have lots of people so if you don’t have your own unique selling point then you are like the regular jack out there, I wanted a specialization because I believe that everybody should have something they specialize in so when a very big garment company that was operating in Nigeria folded up last year I was fortunate to have visited their factory like two weeks before that time and I saw the factory. I was impressed , up until that time, I had never thought about it because that came at a time I was praying and asking God for something that I would specialize on not just a general thing and my spirit confirmed it immediately. Two weeks after, I was somewhere and I was informed that that company has folded up.

    Aside work, as a CEO, do you ever get time to relax?

    I’m an indoor person, but I love going to movies a lot.

  • ‘Unregulated importation undermines local investment’

    ‘Unregulated importation undermines local investment’

    Mr Piyush Nair is Managing Director, Bayswater Industries Limited, producers of Mr. Chef Beef and Chicken seasoning cubes as well as other seasoning powders. In this interview with Tonia ‘Diyan, he speaks on the state of the  economy and its impact on the shopping habits of consumers.

     

    With the recession, the disposable income of consumers has shrunk, leading to an adjustment in spending. What is Mr. Chef doing to maintain patronage?

    True, the times are quite challenging for all manufacturing organisations, particularly with the inability to source foreign exchange (FOREX) for import purposes to accelerate local production. With the sharp drop in production, there have been job losses and other consequences. But there is still opportunity for growth if the government supports aggressive production rather than encourage consumption.

    For more than 40 years, customers have been loyal to our products because over the years,  Mr. Chef Beef and Chicken seasoning cubes have maintained consistency in quality regardless of the state of the economy. We are very happy about this, particularly because it has also helped us to remain a partner in government’s efforts to turn the economy around.

    Can you be more specific?

    As a major producer of seasoning cubes and powdered seasoning, our key objective is to be an indispensable kitchen companion that would make the cooking experience of our customers both inexpensive and a great delight. During the recent period of scarcity and high cost of tomatoes and other condiments, for example, our customers did not have to struggle to make great and tasty meals because our brands were and are always in season. Mr. Chef easily filled the gap. Our products like tomato seasoning powder and cubes; ginger; onion; garlic powder; jollof/fried rice seasoning mix; Ata rodo pepper as well as mom’s pride chicken and beef cubes and classic beef and chicken seasoning powder, to mention a few, easily filled the gap for consumers.

    What informed the launch of your latest product, Choco Love?

    Broadly, Choco Love is a nourishing cocoa beverage drink formulated to promote the sharing of family love. This, in itself, makes Mr. Chef different from other brands in the market because we always aspire to put the family first. Choco Love is produced to conform to the African concept of ‘family’, which revolves around sharing love and unleashing the confidence within each individual. This concept recognises that the family does not necessarily refer to bloodlines, but also to the humanity that we all share.

    What is your assessment of the environment where you operate?

    Producers of fast-moving commodity goods (FMCGs) will readily admit that the unregulated importation of substandard food seasoning is killing our market segment. These grey imports also constitute health hazards because many of these products are usually not certified by the authorities. This is a major problem not just for Mr. Chef, but for all producers. At the root of this problem is the fact that consumers tend to place cheap pricing ahead of other considerations. The importation of these unregulated goods also undermine the huge investment that we and other local producers have made in-the economy.

    So, what solutions would you proffer to deal with the problem?

    First, the government needs to encourage local producers to do more so that the economy can experience rapid transformation. With more local production, employment opportunities will open up and there will be more money in the pockets of citizens. It is a cycle that creates prosperity. This, however, will not happen if government does not help us to protect our heavy capital investments. Placing a ban on unwholesome imports to protect the health of the people as well as save our industry and the nation’s economy is an option that needs to be quickly considered.This is not anti-competition. On the contrary, doing this will create a level playing field for all producers. This, in turn, will make the operating environment sufficiently attractive to investors. It is high time everyone that believes in Nigeria demonstrated that love by making serious investment in the  economy as we have done.

  • Boosting local football league marketing appeal

    Boosting local football league marketing appeal

    Since the kick-off of this year’s Nigeria Professional Football League season, there has not been a title sponsor. To enhance the brand profile of the league, Nigerian Breweries has injected its marketing investment into it, positioning its premium brand,  Star Lager beer, as the official beer of the Nigerian football league, reports ADEDEJI ADEMIGBUJI.

    As the economy continues to slide, especially with recent admission by the Minister of Finance, Mrs. Kemi Adeosun, that Nigeria is technically in recession, the questions marketers and brand managers need to answer  are: How to invest wisely in brand building, where to use as point of exposure to engage consumers beyond the traditional platforms, and when to invest and achieve an impactful mileage for their brands?

    The economic challenges have forced some brands to rethink how to survive amidst the continued decline of the economy, to stop their marketing efforts sliding to almost zero level.

    Operators said the tough operating environment has forced a leading telco to cancel its entire billboard advert placement in Nigeria – a development that showed sliding marketing budget.

    Nielsen West Africa Managing Director Mr. Lampe Omoyele, in a marketing survey by Nielsen, a global marketing research firm, said the economy’s downturn presented brand managers ample opportunity to deploy more marketing campaigns.

    At an event organised by advertisers, he said brands should be innovative, and corporations should look for where to place their brands to derive  optimum value for marketing expenditure rather than withdrawing from marketing in the name of tight budget occasioned by market malady.

    Yielding to this advice, Nigerian Breweries shocked the marketing industry on Tuesday when it announced a major sponsorship deal with the Nigerian Professional Football League (NPLF), run by the League Management Company (LMC). The sponsorship is expected to position NB’s premium brand Star Larger beer as the official beer of the Nigerian League. Banking on an average of 8,000 fans (according to 2014/15 season fan review) that attended games, the brand is expected to ride on the impressions the league enjoys, especially via its growing digital interest.

    According to Keyhole, a real-time hashtag tracker for Twitter, Instagram and Facebook, the NPFL enjoys an average of 500 posts with four million impressions on Twitter every weekend.

    The sponsorship, according to a media buyer, would also offer Star Larger beer an opportunity to reach about 30 million TV football  audiences, who watch local leagues both in Nigeria and abroad via digital and online TV.

    The brand is also expected to leverage on the growing emotional factor in the Nigerian league to bond with its consumers. For instance, there is a growing interest among families who attend local league matches in their bright club replica jerseys due to enhanced security at venues across the country.

    Touted as having the biggest crowd for domestic football in Nigeria, for more than 15 years and expected to rise this year, the league has become more competitive as clubs now chase points, leading to greater excitement for the fans – the biggest stakeholders who are the core target consumers of most brands.

    Over the years, there has been a chasm in football sponsorship in Nigeria. Unlike its European league counterparts that enjoy sponsorship on all their properties, such as TV right, sports arena advertising hoardings, Jersey, and league naming, among others, the Nigerian league has had  tough times in attracting sponsorships from various brands.

    “The NPFL, like many important leagues across the world, needs big corporate organisations to support its message of youth empowerment – at least 700 footballers are employed across the 20 club sides in the league,” said LMC Chairman, Shehu Dikko.

    Having enjoyed a great deal of sponsorship from Globacom, other brands have not been forthcoming, especially at this critical period when the brands are cutting marketing budget because of market realities. While some do not see the opportunities in coming on board, Star has defied the marketing challenges, economic recession and threw its marketing fund to support the league.

    ”This partnership agreement with Star shows that there is an opportunity for corporate Nigeria in our league and we hope that many more organisations will take advantage of football to reach their target market as we continue to build an attractive league,” said Dikko.

     

    Need for brand support

    However, due to the fact that more than 70 per cent of clubs are still owned by state governments, player salaries are hampered by the financial insolvency of many governments across the country.

     

    Leverage for brands

    Still, there have been more positives than negatives on the domestic scene, which has seen brand impressions grow digitally with increased interest. This, however, informs why Star Lager beer, Nigeria’s first indigenous beer, decided to support the growing local success story to push it beyond its current reach.

    “We’re excited to sign this agreement with the LMC that sees us become Official Beer of the NPFL for the next four seasons. It’s a partnership that we expect to bring excitement to Nigerian football and the fans who love the domestic game,” said Managing Director, Nigeria Breweries, Nicolas Vervelde.

    With a massive investment in the NPFL through this new partnership, Star will be able to connect its message of vibrancy and excitement with football fans across the country.

    The partnership will see STAR provide excitement to fans during matches through activations, music and fun games at match venues. Fans will be able to win signed memorabilia, replica match balls and jerseys as well as key rings.

    For many that have complained about the lack of entertainment after matches, Star’s experience with music would ensure there’s never a dull moment post-match.

  • Reps committee backs firm on local capacity

    The House of Representatives Committee on Local Content has called on International Oil Companies (IOCs) to patronise marine support base and shipyard of West African Ventures (WAV) in Warri in Delta State.

    The lawmakers made the call when they visited the firm as part of their oversight function to inspect and verify the company’s local content capacity. During the inspection, they saw new boats awaiting purchase by oil and gas firms.

    The House Committee on Local Content Chairman, Hon. Emmanuel Okon, lamented underutilisation of the company’s facilities by IOCs. He advocated patronage by oil firms to encourage sustainable investment needed to build capacity and enhance indigenous companies to compete internationally.

    He expressed satisfaction with the standard of passenger boats, tug boats and investment in the dry-dock, assuring that the House would ensure sustainable patronage of the multi-billion naira yard  of West African Ventures and facilities of other indigenous companies by the operator companies in the country.

    Okon said: “I am impressed by what I saw and I believe the community is impressed too with your local content deliverables. Even though the facilities are not utilised as they should be, we will try our very best to get people, marketers who can market this company and give the products the level of patronage that they deserve.”

    He said the lower chamber will  ensure that the crisis in the oil and gas sector doesn’t weigh down the business. He noted that the global crisis was affecting related markets and other local companies at this time. “As a responsive legislature, we will make sure that we continue to legislate and come out with laws and legislations that will force other companies and other users of light boat like this to consider getting it from companies like WAV, which have huge investment in the country to create jobs,” he added.

    The committee said the Local Content Law since its creation in 2010 has encouraged steady investment in various regions of Nigeria, adding that it law has promoted immeasurable investments and achievements in terms of job creation and skill acquisition in the oil and gas sector. He noted that local companies have done well as a result of the law, adding that more investments are expected when the economy takes a stable position.

    West African Ventures Limited Executive Director, Alhaji Ibrahim Sambo, agreed that there were crisis, which prompted developments, such as redundancies for survival in the system.

    He said the firm embarked on three redundancy exercises in the last quarter to manage cost in view of dwindling revenue.

  • Local hotel brands yet to upgrade, says expert

    MANY hotels are yet to deplore technology to enhance customer service delivery, SlimTrader’s Chief Executive Officer (CEO)/founder, Femi Akinde, has said.

    He spoke at the inaugural empowerment programme with the  theme: ‘Positioning your hotel for greater sales’, organised by the e-commerce company, in Victoria Island, Lagos.

    Akinde said there was need for managers to ensure effortless hotel transactions.

    “The forum will continue to feature an insightful lineup of presentations and panel discussions ranging from what it takes hotels in Nigeria to create visibility to specific target groups to new ways for the Nigerian hospitality sector to extend its reach to a bigger local and international audience,” he said.

    “The mission of SlimTrader is to facilitate effortless transactions for businesses across Sub-Sahara Africa. In working with hotels, we discovered that they face serious challenges in securing reservations to offline payments.

    “We found out that there are lots of hotels that find it difficult to run their operation in terms of technology. They hire consultants to research all the available options and to propose one.”

    Over 500 participants attended the event.

  • Fed Govt pledges support for local content developers

    The Federal Government has said it is ready to support to information technology (IT) local content developers that have solutions to some of the problems in besetting the country. It added that eight new technology innovation hubs would be set up across the six geopolitical zones in the country with one each in Lagos and Abuja.

    Speaking yesterday at the maiden edition of Aso Villa Demo Day organised by the Federal Government through the Office of the Vice President, an official form the Office, the programme is in line with President Muhammadu Buhari’s economic diversification agenda. He added that the ICT sector is one of the key areas the government is exploring to develop so as to shore up dwindling oil revenue.

    The event was tagged: If You Could Pitch an Idea to the President, What Would it Be? Over 100 prospective and already established technology startups were on hand to pitch their ideas to investors and entrepreneurs. He said the Federal Government is moving away from oil dependence to a knowledge-driven economy, adding that the government will support and celebrate the best in the fields of creativity, innovation and entrepreneurship with a focus on economic diversification and inclusive enterprise.

    “This is a chance for us to drive Africa’s technology growth into the mainstream, by providing young entrepreneurs and start-ups in creative ventures, the required support to thrive,” he said.

    Quoting Buhari, he said: “We must redouble our efforts to sustain the economic development of our country, ensure empowerment of our youths, create more jobs, improve and upgrade our infrastructure and promote good governance.”

  • Rowing federation trains local coaches

    No fewer than 20 coaches from across the country participated in a three-day technical seminar over the weekend at the Nigerian Navy Sailing Club, Ojo, Lagos.

    It was organised by the Nigeria Rowing, Sailing and Canoe Federation (NRSCF) partnering with British Rowing and FISA, the international rowing federation.

    Kicking off the seminar, The President, Nigeria Rowing, Sailing and Canoe Federation (NRSCF), Admiral Festus Porbeni (RTD) has reiterated the commitment of the federation towards creating more awareness for the sport in Nigeria by actively engaging more youths to the sports.

    He also said that the federation was also working had to ensure Nigeria becomes a regional powerhouse for water-sports which was why it is holding a three day seminar for coaches, partnering with British Rowing.

    “Rowing is a silent sport with a lot of medals to be won in the Olympics. The Canoeing and Rowing events at the Olympics gather no less than 90 medals between them and there is the need to start harness into events in order to win more medals for the country.”

    “This is the reason why we need to take the game to the grassroots and we would need local coaches for our ambitious expansion programme.”

    Admiral Porbeni, recently elected Vice-President of the Confederation of Africa Canoe (CAC) in Durban, South Africa  also said funding is a major challenge for the federation but it is in talks with corporate bodies to sponsor the sport.

  • Killing local tomato paste brands

    Killing local tomato paste brands

    Porous borders and ignorance have been  identified as the biggest challenges of growing local tomato paste brands in Nigeria, reports ADEDEJI ADEMIGBUJI.

    These are trying times for owners of locally-produced tomato paste brands. A recent undercover survey report by the industry has revealed that Nigeria’s porous borders and the poor capacity of consumers to differentiate between quality and substandard tomatoes paste products are the biggest threat to the survival of local brands.

    For local players, Seme and Cotonou in Benin Republic are the conduit through which unapproved imported tomatoes brands flood the Nigerian market, hence, posing a big challenge to local brands.

    “All the 12 warehouses visited eagerly offered to deliver in Nigeria any quantity of any brand chosen within two days if 70 per cent down payment is made. A top distributor in Cotonou, Fedinand Ababio showed us packed consignments he claimed would be delivered to Nigeria that night,” the report stated.

    With Nigeria’s economy dominated by substandard and cheap tomato paste smuggled across the borders, some local brands, such as Vitali, Ric-Giko and Sonia, grapple for survival.

    While unapproved imported brands have penetrated most homes, industry brand handlers are worried that low consumer education remains another challenge to deal with.

    The recent survey revealed that the yardstick used by most consumers to pick their preferred tomato brand is the level of “thickness” and “redness” of the paste.  About 22 housewives and caterers, who were interviewed in three areas of Lagos, said they used these yardsticks to determine their choice.

    However, recent findings revealed by the National Agency for Food and Drug Administration and Control (NAFDAC) showed there is need for massive consumer education on tomato paste brands that are healthy to avoid self-poisoning among consumers in the country.

    The Nation learnt that NAFDAC officials recently visited 27 main markets and four major supermarkets around Lagos and picked 330 samples of tomato pastes for laboratory analysis. The results for 314 were later released. Of 314 released, 286 of these tomato pastes originating from China, representing 91.1 percent, were found unsatisfactory in terms of tomato content. Only 28 returned satisfactory, even though both satisfactory and unsatisfactory tomato pastes had the same red colour.

    “The red in most of the tomato pastes imported into Nigeria indicate an addition of colorant, which is prohibited, dangerous to health and shows that Chinese companies are merely adding colour, rather than the raw material called concentrates, into tomato pastes imported into Nigeria. These colouring stick to veins, arteries and vital organs  accumulate to cause cancer, hypertension and other diseases,” the report stated.

    It was also revealed that majority of the imported tomato pastes in the country do not contain lycopene, thereby exposing millions of Nigerians to cancer and other deadly diseases.

    “Lycopene, is a free radical-fighting antioxidants. Free radicals are damaging molecules that float around in the body disrupting cells and promoting disease. Antioxidants, such as lycopene, destroy free radicals so they can’t attach to your cells and wreak havoc on the immune system. The deception is completed by reducing the content of tomato concentrates and filling up the space with starch to boost thickness,” the report stated.

    However, the President/Chief Executive Officer Erisco Foods Ltd, Eric Umeofia, said activities of nefarious tomato paste importers, supported by an ignorant consuming public are almost bringing the local tomatoes industry to its knees.”We have huge stocks of finished products worth billions of naira in our warehouses which we are not selling due to dumping of these dangerous and substandard brands of tomato paste from China that are cheap and filled with starch and colours,” he said.

    Umeofia also revealed that with about “1,000 containers of tomato coming into Lagos port every week. Nigeria is losing $1 billion to tomato paste importers every year.”