The Nation Newspaper

Tag: manufacturers

  • Manufacturers raise the stake as consumers’ loyalty tumbles

    With the drop in disposable income, many consumers are taking their time to buy only products that meet their needs. Manufacturers are also relying on technology in order to meet consumers’ needs, writes COLLINS NWEZE.

    The food and beverage sector is, perhaps, the most competitive industry. Here, manufacturers compete with one another to develop products exceed consumers’ expectations, and meet specifications of regulators.

    The competition for market share has risen. And with the drop in consumers’ disposable income, consumers buy mainly products that meet their quality test. The development has challenged manufacturers to improve on their operations, making the entire production chain more efficient.

    Today, the realisation has dawn on every manufacturer that the era of just emptying the vault to be seen as bein competitive was gone for good. Hence, there is a swelling intrinsic call on production managers to consistently explore newer, smarter and more efficient technology.

    A consumer and brand expert, Kingsley Obi, said manufacturers should be able to prototype, test and launch new products that heighten consumer trends and preferences at the least possible cost.

    “Unfortunately, taste, like the story of human civilisation, is an endless journey. What has remained constant over time, however, is the preference for things and products people perceive would make them look younger or healthier,” he said.

    Obi explained that in the food and beverages sector, healthy food advocacy has been a topical issue among operators, a trend the food and beverage industry operators have also monitored with strong interest.

    According to Obi, major local players in the industry have also promptly responded to the conversation in terms of research/development, packaging, technology utilisation and ingredient mix. With more and more manufacturers entering the fray, producing to meeting the health concerns of consumers has become the cutting-edge of the industry.

    He said that for a few companies operating in the industry, it does not matter whether consumers consciously demand for healthy products or not.

    Obi said: “Healthy living is ingrained in their business operation and is already part of them. And this, perhaps, is what has made such companies not only assume leadership status but also become drivers of the industry.

    “And one manufacturer that has considered a healthy turf its natural habitation is Promasidor Nigeria Limited. Indeed, this is one player that is reputed for quality standard, a premise on which it gained market acceptance in 1993 when it started operation.”

    The company also appears to have understood that success has its snares and that complacency could be a lethal weapon in corporate brand building.

    So, to sustain its leadership position in the highly-competitive industry and accommodate the growing desire for natural ingredients, which has now become the trend, it has introduced a three-in-one (ginger, onion and garlic (GOG) Onga flavour into the local market.

    The Chief Nursing Administrator of Elite Health Systems, a Lagos-based medical centre, Mrs. Omolara Onabolu, spoke passionately about the new Onga, which she described as “the real deal” in efforts to increase vegetable consumption and build a healthier society.

    She observed that ginger, onion and garlic, which many people take for granted, enhance the performance of vital human organs and made individuals more productive.

    Mrs. Onabolu said: “The three vegetables used for the seasoning – ginger, onion and garlic – enhance the body system. So, Onga GOG is the real deal and it is good for all.

    “To combat and control ailments such as high blood pressure and poor eyesight, we all need these ingredients. And because these have become common health challenges, the product is coming to the market at the right time. I commend Promasidor Nigeria for its thoughtfulness.”

    Online media reviews on the product performance have been incredibly positive.

    Writing on the brand’s Facebook page, Taiwo Abiola, who is based in Lagos, said: “The product is extremely good. The taste is as great as the health benefits of ginger, onion and garlic. The flavour is not different from the fresh ingredients. I only hope it will continue to be available because peeling of fresh garlic and ginger is frustrating and can be time-wasting.”

    For several years, Promasidor Nigeria has dominated the dairy market. But it stayed away from the evaporated milk category until recently.

  • ‘Prevent manufacturers from accessing security equipment’

    THE Special Adviser on Security and Intelligence to Lagos State Governor, Mr.  Kunle Ajanaku, has advised manufacturers of security equipment to ensure that they do not sell their products to suspected criminals.

    He gave the advice during the opening of the Securex West Africa exhibition at Victoria Island, Lagos.

    Ajanaku scored the government high on crime prevention, saying it was because of government’s efforts that the rate of crime fell in the state. The government, he said, made its security policy people-oriented.

    Former Deputy Inspector-General of Police (DIG), Israel Ajao, praised the state government for its support to the police in tackling crime, noting that this gesture has helped in improving the police’s response time.

    Lagos State Security Trust Fund (LSSTF) Executive Secretary/Chief Executive Dr Abdurrazaq Balogun said the government had in the last 10 years been providing 80 per cent of security funds. He, however, urged corporate organisations and individuals to support the government.

    Former Solicitor-General/Permanent Secretary, Ministry of Justice, Mr. Fola Arthur-Worrey, identified lack of cohesion as responsible for the rot in the judicial system.

    Arthur-Worrey called for proper funding of the police, adding that this would solve the problem created by the emergence of the Peace Corps.

    Regional Director, AfrocetMontgomery, organisers of the exhibition, George Pearce, said 50 exhibitors from 70 countries attended the event, adding that 40 per cent of the attendees were from Nigeria.

    He said there would be more security challenges as the population increases, adding that all hands should be on deck to contain it.

     

  • Court orders manufacturers to insert health warnings in condom adverts

    Court orders manufacturers to insert health warnings in condom adverts

    AN Igbosere High Court, Lagos has ordered manufacturers of condom to warn users that it cannot guarantee 100 per cent safe sex.

    Justice Taofiquat Oyekan-Abdullahi ordered condom producers to insert the Advertising Practitioners Council of Nigeria (APCON) Health Risk Warning Clause in condom adverts.

    The APCON warning states: “Condom is not 100 per cent safe. Total abstinence or faithfulness is the best option.”

    The judge ordered that condom advertisements should be aired between 6pm and 10pm on television and between 6am and 8pm on radio.

    Justice Oyekan-Abdullahi made the order in a suit filed by the Incorporated Trustees of the Project for Human Development (PHD) against the Society for Family Health (SFH).

    The ruling followed a consent judgment reached by the parties last month, but which was made available to The Nation yesterday.

    PHD had through its counsel, Sonnie Ekwowusi, sought a declaration that the advertisement of ‘Gold Circle’ condom by SFH without the APCON health risk warning clause was illegal and unconstitutional.

    Ekwowusi said it was contrary to Article 49 of the APCON Laws, Sections 17, 37, 38, 39 (3), 45 of the 1999 Constitution and Articles 17, 18 27 and 29 of the African Charter on Human & Peoples’ Rights (Ratification Enforcement) Act, CAP 10.

    The applicant contended that condom advertisements in Nigeria give the misleading impression that they are 100 per cent safe.

    Ekwowusi added: “If there are no holes in condoms, why would the United States Food and Drug Administration (FDA) insist that manufacturers test for holes in condoms and consequently set an Acceptable Quality Level (AQL) that if up to four condoms have holes in a batch of 1,000, the batch will be allowed to pass?

    “Condoms, in addition to having possible manufacturing defects, could undergo deterioration during shipping, handling and storage, and even further degradation after purchase by the end user,” the applicant argued.

     

  • Manufacturers guarantee products, not retailers

    Last Friday, an engineer Tobison Oluso tried in vain to hold his anger and frustration in check as he could not understand why a shop within Ikotun Egbe shopping Mall would refuse to give guarantee on products purchased from it.

    In his anger, he called ConsumerWatch pointing out that even the receipt issued to him was bearing, ‘goods purchased in good order cannot be returned or money paid refunded back to the buyer’.

    “I did not notice all these till I got home and had a closer look at the receipt. Again, I expected a guarantee but did not know there was none. At this point, I went back to the shop and demanded a refund of my money which I did not get,’’ lamented Tobison Olusola.

    He appealed to ConsumerWatch to intervene and appeal to the electronics company, ‘Y.K Electronics’, to revert their policy and issue him with a guarantee on the LG television set he bought or take the television set back and refund his money.

    However,  manager of the shop, Mr. Kola Ojo, explained, though arrogantly, that the shop on its own cannot give buyers guarantee on any product as they are not qualified to do so as they did not manufacture the product.

    Pointing to a carton of an LG television set which has a silver and red sticker bearing, ‘2 year warranty’ MEZ64833201, he observed that the manufacturer had already guaranteed the product and there was no need for further guarantee from the retailer.

    On the additional information on the receipt which stated that ‘goods bought in good condition are not returnable nor can money be refunded to buyers’, the manger explained that sometimes customers buy goods in excellent condition, damage it at home and bring it back to the shop for an exchange or a refund.

    “We make sure we sell goods that are in good condition. If it is electronics, we test it for buyers before they leave the shop. If the buyer then goes with the product and comes back later to claim it does not work, we will not accept it nor refund the customer,” emphasised the shop manager.

    Yes, it may not be the responsibility of the retailer to issue guarantee or warranty, as he is not the manufacturer, but he is the person between the buyer and the dealer or manufacturer. It is his sole responsibility to clear any confusion the buyer may have concerning guarantee or any other worries over his purchases.

    The buyer does not have access to the dealer or the manufacturer but the retailer does.

    Presenting the case to LG electronics, a top management staff who preferred anonymity, said that LG television sets come with two years’ guarantee. “If anything happens to the product as listed in the conditions of the guarantee, we encourage the consumer to take the product to our Service Centre at No. 22 Boma Rd. Apapa, Lagos, for a free replacement of a part or servicing subject to what is wrong with the product.

    “Depending on what is wrong with the product, the consumer may not need to spend more than two hours in our service centre as we have a fully equipped and modern service centre with world class professionals to attend to customers.”

    However, the LG staff warned that the product concerned must be genuine LG product, adding “that is why we advise consumers to patronise LG brand shops which are located all over the nation.”

    Speaking further, he said, “Though a retailer cannot give guarantee on a product but good customer service requires a retailer to offer the customer the opportunity of taking the product on his behalf to the manufacturer’s service centre or nicely directing the customer to the manufacturer’s service centre.

    “In the case of Tobison Oluso, the product was not even damaged; he just needed more assurance and explanations. The retailer could have made the customer satisfied by offering more reassurance by telling him that if anything happens to the product within the specified guaranteed period that he should bring the product back so he will assist him to take it to the service centre,” explained the LG staff.

    Both the Standards Organisation of Nigeria [SON] and the Consumer Protection Council [CPC] of Nigeria have repeatedly and on different occasions condemned the idea of business men printing ‘goods sold in good condition are not returnable, exchanged or money refunded’ on receipts.

    The two government regulatory agencies had promised to get businessmen to stop the ugly development, but so far nothing concrete has been done.

    The former Director General, (CPC), Mrs. Dupe Atoki, had accused retailers of short-changing consumers and abuse of consumer rights with ouster clauses such as ‘no refund of money after payment’ and ‘goods received in good condition cannot be returned’ on their receipts, while the then DG, Standards of Organisation of Nigeria (SON), Dr. Paul Angya, wondered if the statement was in anticipation of a product failure.

    Both DGs made the allegations in Sheraton Lagos at the interactive forum of CPC with stakeholders on enforcement of warranty and guarantee on products and services.

    Atoki, while addressing key industry operators in automobile, electrical/electronics, heavy duty equipment, on-line markets and superstores subsectors of the nation’s economy, regretted that Nigeria was the only country where such clauses are printed on receipts.

    “The situation in Nigeria is a sharp contrast as traders boldly print on purchase receipts terms like ‘no refund of money after payment’ and ‘goods received in good condition cannot be returned’. It is unacceptable that a producer, distributor or trader will attempt to completely vitiate the right of the consumer to redress by caveats of this nature.”

    Describing the situation as intolerable, Atoki said that manufacturers and retailers will be given a time frame to remove the statements from their receipts, warning that at the expiration of the time frame, the agency will come hard on those who refuse to comply.

    She warned that “the statement should not be a blanket statement, it should be subjective. Take each situation and analyse it fundamentally,” adding that on face value, the product may look okay while it may have manufacturer’s defect which can only be detected when the buyer puts it to use.

  • Push to cut N19.5tr raw materials import bill

    About N19.5 trillion has been spent by manufacturers to import input in 16 years,  says the  Raw Material Research and Development Council. This huge capital flight may have prompted manufacturers and the government to look inwards for alternatives, reports Assistant Editor OKWY IROEGBU-CHIKEZIE.

    For long, manufacturers have relied heavily on raw materials importation for production.  Local raw materials, they argue, are not readily available. This has forced them to turn to importation at huge cost, which, of course, affects their profit and competitiveness.

    For instance, between 2000 and 2016, raw materials importation, according to the Raw Material Research & Development Council (RMRDC), gulped a staggering N19.5 trillion.  Experts and real sector operators have adduced several reasons for the heavy financial burden foisted on manufacturers by this huge capital flight, one of which was the paucity of infrastructure, particularly electricity supply and efficient road and rail network, among others. Others are lack of incentives for research institutions in the country to build their capacity; the Central Bank of Nigeria’s (CBN’s) policy that excluded importers of 41 items from access to its official foreign exchange (forex) market.

    The CBN argued that the 41 items were finished products and were not qualify for forex. But manufacturers, who were affected by the policy had consistently kicked, insisting that what was banned were finished products for their sector. They lamented that the policy, which made it extremely difficult for them to access certain raw materials led to factory closures and loss of jobs.

    But a new strategic approach aimed at halting more factory closures and the attendant loss of jobs by significantly cutting the huge money spent on raw materials import is underway. Essentially, the strategy, The Nation learnt, involves a renewed collaboration between the government and the real sector operators, especially manufacturers looking inwards to harness local raw materials and save the economy from the burden of continuous importation.

    RMRDC Director-General, Dr. Hussaini Dikko Ibrahim, articulated the new approach when he said the government was developing a new national strategy on raw materials development and competitiveness in research and development institutions. He said this was to enable the country attain sustainable socio-economic growth and development.

    “Today, particularly with the recession, Nigeria is confronted with the challenges of business failures, factory closures and high unemployment and inflationary pressures. Also, we are plagued by depleted foreign exchange earnings and reserve, drastic devaluation of the national currency, huge arrears of workers’ salaries and pension, among others,”he said.

    Ibrahim said the strategy, which would be in partnership with industries and businesses, would accelerate and re-direct the pathways to recovery and growth of the economy. He said the initiative was aimed at attaining global competitiveness in raw materials and products development with the attendant boosts in  local and international confidence in Made-in-Nigeria products and services.

    He added that the unique features of the strategy include forging partnerships among Research and Development (R&D) institutions with industries, businesses and entrepreneurs towards providing solid and quality national infrastructure.

    It also aims at ensuring co-ordinated mapping of some 100 Nigerian raw materials and products on the United Nations (UN) harmonised classification scheme map.

    The RMRDC boss said this was in addition to the alignment of the nation’s R&D institutions with the Manufactures’ Association of Nigeria (MAN), National Association of Small  Scale Industrialists (NASSI) and Nigerian Association of Small & Medium Enterprises (NASME).

    The collaboration, he said, was geared towards promoting local utilisation of raw materials, R&D efforts to increase industrial capacity utilisation and contribution of manufacturing to the nation’s Gross Domestic Product (GDP).

    Ibrahim expressed optimism that the successful implementation of the strategy will be far-reaching and beneficial to Nigeria. According to him, it would enhance alliance among Nigerian scientists and entrepreneurs, industries and businesses.

    He regretted that the manufacturing sector has been facing stiff competition due to bilateral and multilateral trade agreements such as Economic Community of West African States (ECOWAS) Trade Liberalisation scheme (ETLS), Common External Tariff (CET) and the impending Economic Partnership Agreements (EPA), adding that other World Trade Organisation (WTO) trade policies are transforming the world economy into a vast free-trading zone.

    The RMRDC Chief, however, observed that as a way of addressing the raw materials question, there was the need for research and development to identify local substitutes or alternative raw materials in local manufacturing.

    He said: “As we all know, R& D in Nigeria both in the tertiary educational institutions and government-owned research institutes is not up to the level required. This could be attributed to a number of factors, including inadequate research infrastructure. Often times research results are left on the shelves of the laboratories where they are conducted.

    “There is poor linkage between the researches and prospective investors and entrepreneurs to commercialise these innovations. One way to address this is for manufacturers to get involved in R&D for the development of local raw material substitutes to imported ones, new technologies in raw materials processing or new products development for the local market.”

    Ibrahim revealed that government tax laws have provided a number of incentives to encourage manufacturers to venture into R&D for the development of local raw material substitutes to imported ones.

    The RMRDC Chief noted that over 10 billion raw materials are available in the country, with every square metre having over 10,000 square metric tones of solid materials. He argued that indigenous manufacturers have no reason to import raw materials or machinery as almost all they need for their processes are in the country.

    According to him, RMRDC’s studies and researches have made the nation a net exporter of cement, with over 25 million metric tonnes unlike what it was in 2002 when Nigeria was importing the product with the scarce foreign exchange, which was draining the economy.

    Real sector operators’ position

    MAN President, Dr. Frank Udemba Jacobs, stressed the strategic place of manufacturing in driving growth and economic development in a country. He observed that the major challenge of the sector was obsolete machinery and equipment, which impeded the efficiency of manufacturers, especially small and medium-scale ones.

    According to him, it has slowed down production, inhibited efficiency and economy of scale. He, therefore, pledged MAN ‘s preparedness poised towards leading the sector to play its key role in the new vision of the nation with the belief that Nigeria has the potential to become one of the leading industrialised economies of the world.

    Jacobs called on SMEs to learn new processes on how to boost their production output, reduce cost, improve product quality and manufacture for new markets. He canvassed a structural shift towards higher growth in more value-addition and higher labour-absorbing manufacturing that will drive a shift to a developmental path with capacity to generate more growth and higher levels of employment.

    He also noted that appropriate policy choices in the productive sector can engender economy-wide employment.

    The National Office for Technology Acquisition and Promotion (NOTAP) Director-General, Dr. Ibrahim Dan Azumi, frowned at the level of raw material importation and asked that it should be reduced to encourage local content.

    He said: “Let’s build a linkage between manufacturing and the academia and join forces to make things better for the socio-economic development of the country. There is the need to commercialise the credible researches that have been done in our universities. Besides, the government needs to develop infrastructure to encourage local manufacturing.”

    On his part, Director of Government Relations and Public Policy, Sub-Saharan Africa Operations, Procter and Gamble (P&G), Temitope Illuyemi, lamented the N19.5 trillion spent on the importation of raw materials between 2000 and 2016.

    Speaking at a forum for suppliers in the manufacturing sector, organised by her company in partnership with the Ministry of Industry, Trade and Investment and MAN, she said: “A huge percentage of industrial raw materials for manufacturing of products are still being imported into the country.”

    Speaking on the objectives of the forum, Illuyemi said: “Backward integration is essential to the growth of the Nigerian economy and P&G’s aim was to encourage our global partners do the same and thereby promote technology transfer. We will work to pre-qualify local suppliers for materials used in the production of consumer packaged products and by extension, build capability of local manufacturers to compete effectively in regional value chains and further strengthen the diversification efforts of the Nigerian government.”

    She noted that for the manufacturing sector to experience potential growth going forward, it needs to focus on local production and companies like Procter & Gamble are taking deliberate steps to support the Federal Government’s economic development agenda.

    According to her, P&G currently manufactures its products close to consumers and this has aided technology transfer. Also, the company’s continuous local investment is a testament to its commitment to support the Federal Government’s diversification efforts.

    Illuyemi maintained that it was imperative for all sectors to intensify efforts towards enabling local entrepreneurship development and helping with the capabilities required to produce raw materials locally. According to her, this will go a long way in actualising the country’s economic development agenda.

    She further stated that the company remained committed to the Nigerian economy and has invested over $500 million in the country till date.

    Earlier, Minister of Science & Technology, Dr. Ogbonnaya Onu, had encouraged Nigerian manufacturers to patronise locally made raw materials for their production. He said it was the only way the economy can grow as it has a multiplier effect.

    The Federal Government, he said, is in support of the growth of the private sector and an economy driven by the sector. He encouraged them to use RMRDC raw materials technology data.

    He further asked investors to show interest in sponsoring alternative raw material investigation and subsequent usage in the manufacturing sector.

  • Electricity: Manufacturers adopt survival means

    Manufacturers under the auspices of the Manufacturers Association of Nigeria (MAN) have taken their destinies in their hands by providing electricity for their operations. Electricity supply dearth is a common knowledge as the national supply has being adjudged the second poorest in the world second only to Yemen, a war torn country, by Spectatorindex twitter handle.

    In an interview with The Nation, MAN President, Dr Frank Udemba Jacobs,  lamented that for over three decades manufacturers have consistently argued on the need to give the sector special consideration in energy supply without commensurate response from the government.

    He regretted that after advocating improvement in electricity supply to industries for over three decades without respite, his association had no choice but take their destinies in their hands.

    He reiterated MAN’s effort at complementing the government attempt at resolving the huge challenge. He said: “Nigeria has a huge population of over 180 million people based on World Bank figure; huge and thriving manufacturing and other businesses, but delivers about 4000 megawatts (MW) of electricity per day.

    “By the rule of thumb, the quantum of electricity generated in the economy should be at least, 180,000MW per day; that is an average of one megawatt per 1000 persons. Moreover, the World Bank report also indicates that Nigeria’s electricity per capita was 142 kilowatts as at 2013, which is well below the world per capita energy of 3,104.382 kilowatts in the same year. Apart from the dearth of electricity supply to the industries, the quality and constant arbitrary increase in the tariff are also major challenges.”

    Jacobs lamented that electricity supply challenges have become hydra-headed to his association and operations.

    On the way forward, he said his association has resorted to self-generated energy, notwithstanding the huge cost associated with such endeavour. He revealed that in 2016 alone, manufacturers expended over N129.0 billion on alternative energy source, noting that the electricity challenge has been one of the major factors responsible for the poor competitiveness of Nigerian manufactured products as it accounts for over 36 per cent of total cost of production in the sector.

    He, however, commended the Federal Government’s progressive effort at improving electricity supply in the country beginning with the privatisation of the power sector. The government, he said, has also shown commitment to helping the companies in the electricity production chain and solve their huge challenges.

    He lauded the Central Bank of Nigeria’s (CBN) N213 billion Nigerian Electricity Market Stabilisation Facility (NEMSF)  support for electricity companies in addressing their challenges. He, however, regretted that despite the support from the government, power supply remains inadequate for domestic and industrial needs.

    According to him, in the light of the various challenges in the electricity sector, MAN he said, is also making significant efforts at addressing the energy challenges of its members.

    On how far the association has gone in achieving sufficiency in electricity. He said: “ The Manufacturers Power Development Company Limited (MPDCL) was incorporated by MAN to drive improvement of electricity supply to members of the association, especially within the industrial clusters.

    “The MPDCL within the last quarter of 2017, has signed Memoranda of Understanding (MoU) with some Independent Power Producers (IPP) and the projects are already at different implementation stages. The Association is also encouraging its members to key into energy efficiency production system.”

    Spectra Industries Limited Chief Executive Officer (CEO), Mr. Duro Kuteyi, also urged the Federal Government on the need to have special electricity rate for manufacturers. He criticised a situation where manufacturers are charged high electricity rates, which he said have the capacity to erode their profits and affect their bottom line.

    Responding to the invitation of the Minister of Power, Works and Housing, Mr. Babatunde Fashola’s invitation to manufacturers to take -up the available 2,000 mega watts excess electricity, he questioned the minister on the modalities and how manufacturers can access it, noting that it can only work where there are manufacturing clusters. He argued that the plan begs the question and will not address it.

    He asked the minister to evolve a novel method of distributing electricity to where needed most so that manufacturers can spend less on electricity supply in their productions.

     

  • Manufacturers make case for local products

    Manufacturers have canvassed for the patronage of made-in-Nigeria products.

    They urged the Federal Government to encourage the use of locally manufactured goods.

    Forgo Battery Ltd Joseph Alex Offorjama Chief Executive Officer spoke for his colleagues in Ilorin, the Kwara State capital at presentation of MANCAP to the company by the Standards Organisation of Nigeria (SON).

    Offorjama said government “does campaign on the pages of newspapers for the patronage of locally produced goods and does the opposite. With SON on ground to regulate the standard, they should enforce or follow with the procurement of made in Nigeria product because they can be better than imported ones”.

    He added: “Every sector has its challenges. For us in automotive sector, we urge government to follow up with the details and then in particular support he local company manufacturers by way of patronage. That is the way we need their support the most.

    “The problems we have are that of multiple taxation, high cost of operation and foreign exchange instability, technical knowhow that is expensive to deploy. But all the same, government of recent is looking in the direction of manufactures because they realise that they are their partners in progress. With government readiness, we hope to continue to remain in operation with their support in this direction.

    “The presentation of MANCAP certificate to Forgo Battery Ltd is a recognition of hard work and we are committed to even soaring higher.

    “Battery is not a very complex product. Besides that, we have our teams who know the pros and cons of it. So, for technician, we are emerging economy with improvement on our technical knowhow. As for a company, we are very backed with foreign technical partners; so, we are focused at delivering the best quality that can compete anywhere in the world.

    “We are happy SON has risen to its challenge in recent days to rip the market of substandard products and for us, the bulk of substandard products are imported into this country. With SON readily on ground to regulate the standards of products, I can encourage Nigerians to go for home made products because they are under the watch of SON and their sources are well known. We should campaign made in Nigerian products because they have quality.”

  • SON, manufacturers collaborate on product authentication

    SON, manufacturers collaborate on product authentication

    The Standards Organisation of Nigeria (SON) has partnered the Manufacturers Association of Nigeria (MAN) to introduce SON’s Product Authentication Mark (PAM) to the market.

    PAM is a mark of quality fixed on  finished products to demonstrate their conformity to approved standards. It is issued as a sticker with security features and QR code, which can be scanned by a smart phone.

    It is applied on each product to ensure traceability and tracking of imported and local products.

    According to the SON’s Director-General, Mr. Osita Aboloma, PAM will reduce product’s counterfeiting, which had become a clog in the wheel of manufacturers.

    He added that it was one of the Federal Government’s initiatives targeted at improving the business environment.

    The SON DG, who spoke at the SON Stakeholders’ Forum on PAM in Lagos, said the agency’s new PAM would raise the patronage of made-in-Nigeria products and boost the country’s economic diversification drive from oil to non-oil sector.

    “We started it because counterfeiting is an age-long menace that has burdened us, leading to the influx of substandard goods in Nigeria. It also makes it difficult for local manufacturers to be competitive,” the DG said.

    He added that it was the agency’s opportunity to deploy technology and authenticate products shipped into the Nigerian market.

    However, certain items, such as food products, drugs, and machi-neries of manufacturers, among others, are exempted from PAM, which will take effect on February 1, 2018.

    To SON’s Acting Director, Product Certification, PAM is important as it would enable manufacturers to sell their products and easily trace them.

    He said the agency’s initiative would reduce the cost of changing logos while ensuring that consumers buy products that give them value for their money.

    “I know of some companies that change their logos every quarter. With PAM, the companies should be able to reduce that cost and put the money elsewhere,” Orngudwem said.

    He stated that the N3 cost per stamp could be negotiated and that the initiative would be a win-win situation for all stakeholders.

    On his part, the Director General/Chief Executive of the Consumer Protection Council (CPC), Mr. Babatunde Irukera, said his agency supported the PAM as it would protect consumers from buying counterfeits and cloned products.

    He said people were dying as result of substandard products , adding that the new initiative of SON would help reduce that.

    “I believe that the Federal Government should declare a state of emergency on counterfeiting,” Irukera said.

    MAN President Dr. Frank Jacobs commended SON for the initiative. Underlining some of the benefits manufacturers would derive from it, he said: “We are aware that this mark will further improve patronage of made-in-Nigeria products and clearly identify original products.”

    He added that it would further safeguard the health of consumers, provide unambiguous means of authentication and heavily reduce grey trade activities such as smuggling and counterfeiting.

    Jacobs, however, said manufacturers were worried and  concerned about the cost implication of the PAM initiative on manufactured products, prices, patent, logistics, packaging lines, sales, and employment.

    The forum was aimed at  ensuring that SON and MAN sought ways on how the new initiative would impact positively on manufacturers without causing burden on the real sector.

  • New interest rates for manufacturers coming

    New interest rates for manufacturers coming

    Vice-President Yemi Osinbajo yesterday said the Federal Government would roll out new interest rates for manufacturers to boost their productivity.

    He said the modalities for providing the loan were being worked out by the government, adding that soon, manufacturers would access the cheaper funds.

    Osinbajo announced this at the inauguration  of the multi-billion dollar 300-million litre tank farm in Ibefun, Ogun State.

    He said the decision was part of government’s efforts to boost investors’ peformance.

    The tank farm was built by Petrolex  Group, an indigenous oil and gas firm.

    He said the decision to give incentives to the private investors, was in line with the agenda of the President Muhammad Buhari administration to encourage economic growth.

    Osinbajo said: ”Government is committed to  providing adequate incentives to private investment operators in government To achieve this, the government will provide a new interest rate specifically to enable operators in the manufacturing sector access cheaper credit for production.”

    He said the decision was informed by the critical roles, which manufacturing sector plays in the history of any nation.

    According to him, the government will provide incentives to  other sectors of the economy, with a view to encourage private investors.

    He commended the firm for the initiative to develop an integrated energy mega city capable of transforming the oil and gas landscape of the country.

    He said the  size and scope of the  investment will help the country to meet its petroleum products need in 2018, and further reduce by 20 per cent fuel domestic need by the  first quarter of 2019.

    He said the inauguration was a testament of the company’s vision and shows also that Nigeria is ready for business.

    Also, former President Olusegun Obasanjo, canvassed a robust public, private sector collaboration.

    In his remark at the event, He observed that no private business can thrive without support from the public sector.

    He urged government at all level to support indigenous companies in Nigeria to strike in other to develop the socio-economy environment.

    Similarly, the Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Dr Maikanti Baru, said the investment is a testimony of ingenuity of indigenous companies and demonstration of capacity to support government reform drive.

    He  promised to support the company to realise its  objectives as the investment would further to achieve its target of ensuring uninterrupted products distribution.

    In addition, Petrolex’s Chairman, Mr Segun Adebutu said the facility will host petroleum products worth of 250,000 barrels of crude oil, adding that it signposted  a good development for the sector.

  • ‘Don’t blame meter manufacturers ’

    The Managing Director of Sebrud Consortium, an indigenous Meter Manufacturing Company, Mr Chisom Nwangwu, has said prepaid meter producers should not be blamed for shortage of the product.

    News Agency of Nigeria (NAN) reports that people have continued to decry the inability of Electricity Distribution Companies (DISCOS) to provide enough prepaid meters for consumers.

    Nwangwu told NAN in Awaka that prepaid meter producers should not be blamed for the inability of distribution companies to meet consumers’ demands.

    He said meter manufacturing firms had the capacity to meet demands for the product.

    Nwangwu said the Awka-based firm with its 400,000 installed capacity would work with the 11 electricity distribution companies to realise the Federal Government’s objective of having all customers metered.

    “Capacity is not the problem, we are producing and the products are there, we have the capacity to supply whatever is demanded by the distribution companies.

    “All that is needed is for them to contact us and place orders. They will get the meters. We are ready to work with the electricity distribution companies,’’ he said.