The Nation Newspaper

Tag: NACCIMA

  • ‘Renewable energy solution to Nigeria’s energy crisis’

    ‘Renewable energy solution to Nigeria’s energy crisis’

    For so long, the issue of epileptic electricity supply has been a source of concern for many. A number businesses and manufacturers have suffered setbacks because they do not have power to meet their demands. Many therefore make use of generators but this makes the cost of production very high.

    Thankfully, people are beginning to see the need to explore other alternative sources of energy-renewable energy.

    This was the crux of a discussion at a public forum recently.

    The forum tagged: ‘The renewable energy option for entrepreneurs and stakeholders’, drew participants from far and near.

    Incidentally, Dr. John Isemede, Director General, Nigeria Association of Chamber of Commerce, Industry, Mines and Agriculture (NACCIMA), who is one of those promoting the need for renewable energy was a facilitator at the forum.

    To the NACCIMA boss, there is a need for a fundamental shift in the way energy is consumed and generated in the country.

    The scale of the challenge requires a complete transformation of the way we produce, consume and distribute energy, while maintaining economic growth, he stressed.

    “Today, we are talking of biomass renewable energy and people are using it in other parts of the world, they are using wave tied to electricity”, informs Isemede.

    He goes on to inform that with the trend around the world, it is not only hydropower that can be used to generate electricity. “People use wind, solar and other sources. With globalisation, there is no home advantage in Nigeria as industrialists believe that the major part of production cost is taken by energy cost apart from the cost of borrowing, distribution and marketing. We all know that what determines success in business is the cost of production but we do not have that here.”

    He adds; “Why is it that the products produced 16,000 kms away in Asia is cheaper? Countries need to plan in the area of their specialisation. We started cocoa export in 1910 yet we cannot process cocoa. It is not that we do not have capacity but we do not have the power. It is cheaper to produce this in other parts of the world. It is sad that we export what we need and import what we have.”

    Sadly, he continues: “We export cocoa pods to bring in chocolate. So we create jobs for other people while our children are unemployed. I went to Netherlands and saw that the biggest cocoa plant is there. There is no cocoa house and no cocoa farm yet they are doing all this. So there is a big challenge. In the past, the price of cocoa was good and proceeds were used to build the Cocoa House. Today, the price of cocoa cannot build the foundation of the Cocoa House. Why are we still importing foods? We do not have energy to process the food produced and even if we have the energy, things are not put in place properly. We have to go back to agriculture because it would give us food; it would give us jobs as well as give us sources of alternative energy.”

    Isemede said countries around the world would not consider the issue of power as a problem, adding that South Africa, for instance, was generating 48,000mw and also supplying Namibia with energy.

    He adds that what the country currently generates could not take care of industries in Lagos State alone and stressed the need to look inwards for alternative sources of energy.

    Buttressing the fact that alternative source energy was safer and cheaper, he said: “Life expectancy in China is the highest in the world now. But today what we are talking about is between 50 to 52 years. A young lady came around and was talking about noise pollution but I told her that she was a smoker and she was surprised. I told her that she was a secondary smoker because a person in a block of flats with eight generators is a secondary smoker.”

    Agriculture, he also stressed, would lead the nation to the proverbial Promised Land. “We have to move agriculture from sustainable agriculture or subsistence farming to value chain agriculture. Those who have been to Kenya know that if you do not have a farm or a house nobody would give you a wife. How are you going to feed her? If you are working in Nairobi and you get your salary, part of it goes to NAGOGO and to your farm. But today all our emphasis in this country is on oil and the electricity that we are talking about, we are generating just 4000 megawatts, which is not enough for Lagos Island alone.”

    Getting the best, he stressed, can happen when there is a total transformation in terms of resources and personnel. “How can you transform a nation without transforming the people? Things are changing in Europe. We are talking about cashless economy and we are talking about a N5,000 bill. There is confusion somewhere. The Transformation Agenda is about Public Private Partnership. Government cannot do it alone. There is nowhere in the world where government has full control of the people and the economy.”

    Isemede goes on to talk about energy and the perceptions of the average Nigerian on the subject. “To an average man, energy is electricity. The technology of the energy we are talking about is not the old technology. As a young man we were using the phone on the table we dialed and from there some of us were going to NITEL with International Direct Dialing (IDD) and from there we moved to the different level of wireless. We should not confuse ourselves with the technology of electricity and that of mobile phones. For instance, there are no wires connecting this wireless system to the main switch, the pole and transformer to the power from Kainji. That is why technology is complicated.”

    To make the required changes, Isemede advised that students and the young ones need to be carried along effectively. “One thing I used to say is that students have been left behind in most of our actions and calculations. As a young undergraduate, the Central Bank of Nigeria was our lecture hall and we go there on a regular basis for statistics. We also went to the World Bank office for records. Most of the things we do now, we do not think that our children and those yet unborn should be carried along. “

    Technologies, Isemede added, are changing and the entity called Nigeria needs to change with time. “Kainji was commissioned in 1959 and my father took me there as a baby and I was able to see things. Three years later, I was taken to Akosombo in Ghana. Today, what legacies are we leaving for our children? How are we building the capacity of our children”, he asked rhetorically.

    Isemede continues: “The essence of going to school is not to Google but to learn and carry out research. In our days in the university, we used to carry three suitcases, two for our books and one for wears. But today the difference is the case. Then if you had a mere pass, a lot of multinationals would be able to build on that.”

    But sadly, he says, this is not so any more. “Now first class degrees have become a generic product that they do not even have management trainee programmes for anybody. All you have today is come and take a job and we give you a target. That is where we are today.”

    Prior to joining NACCIMA , Isemede was an international marketing professional who had worked with Unilever International as the Export/Head of New Market development , Promasidor , Federal Ministry of agriculture , the United nations and Dangote where he was Group Head, Exports and International Business Development Manager, West Africa.

  • ‘Budget delay inimical to private sector’s interest’

    ‘Budget delay inimical to private sector’s interest’

    For the Organised Private Sector (OPS), these are not the best of times. Faced with a stifling environment, the sector is operating below its optimum. In this interview with OKWY IROEGBU-CHIKEZIE, President, Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) Alhaji Mohammed Badaru Abubakar speaks on the challenges facing the sector and calls on the government to create a conducive environment for businesses to thrive.

    How can members of NACCIMA benefit from the National Enterprise Development Programme (NEDEP) just launched by the Federal Government?

    Our members who are business operators would benefit from the programme, designed to create at least 3.5 million jobs across the country through the development of the Micro, Small and Medium Enterprise (MSME) sector, which is the engine of economic growth. We expect that NEDEP, spearheaded by the Federal Ministry of Industry, Trade and Investment (MITI), in collaboration with major drivers, such as Bank of Industry (BoI), Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) and Industrial Training Fund (ITF), would harness the vast opportunities in the MSME sector to drive inclusive economic growth through skills acquisition, entrepreneurship training, business financing, employment generation as well as wealth creation.

    How favourable is the interest rate to members of your association?

    The Central Bank of Nigeria (CBN) and its monetary policy committee have done a good job of maintaining stability in the economy. However, we are still worried that the Monetary Policy Rate (MPR), which, at 12 per cent, is high and keeps the interest rate high and expensive to borrowers. No bank lends to customers at single digit, which is below its cost of 12 per cent. With the current interest rate hovering between 17 per cent and 28 per cent, for a growing economy like ours, it will be difficult to achieve the desired economic growth and motivate indigenous entrepreneurs to establish businesses since they will not be competitive with their foreign counterparts who obtain funds from their countries at single digits and invest in the Nigerian economy.

    How best can the mystery of the alleged missing $20billion Nigeria National Petroleum Corporation (NNPC) fund be unravelled?

    We believe the best way to unravel the $20billion NNPC missing fund is to adopt the two proposed options of forensic audit and the use of international experts to see if the two options will give the same result.

    Do you think the suspension of the CBN Governor Lamido Sanusi would cause a change in the monetary and fiscal policy? What will be the effect of his suspension on the real sector?

    The monetary and fiscal policy is institutional and not tied to an individual. though one can safely say that Sanusi did well, the government should ensure that the monetary and fiscal policy guidelines are more stable and business-friendly and in a manner that would positively impact the real sector.

    How can Nigeria diversify its economy? Any hope for the solid mineral sector?

    The need to promote non-oil exports in an economy such as ours cannot cannot be taken lightly given the global trend to boost trading relations among nations. Given the focus of the government to diversify the economy from mono economy (i.e. oil) by promoting non-oil exports, with numerous incentives put in place to attract investors in the non-oil sector of the economy (agric, manufacturing, solid minerals, etc), the impact so far recorded is still below expectation. With the recently launched NEDEP and the Nigerian Industrial Revolution Plan (NIRP), if the government, in collaboration with members of the private sector implement both programmes, we believe that in a very short period of time, Nigeria will move from a mono-economy to a diversified economy via other sectors such as solid minerals, which is yet to be fully exploited. We can see what is going on with cement, orange juice, and at present, mining activities in Zamfara State by the Chinese, as well as the announcement by the government that four foreign companies would soon begin the mining of gold and iron ore in Kebbi, Osun and Kogi states while more than 20 foreign firms from Australia, Canada, United Kingdom, Italy, China, Republic of Niger, India, South Africa and Ukraine have obtained exploration licenses to carry out solid minerals exploration across the country. There is need for government to demonstrate the political will and transparency to ensure the realisation of the objectives of the two programmes.

    What are the challenges facing NACCIMA members?

    Despite being proactive in the pursuit of our advocacy drive, members of NACCIMA are faced with challenges such as poor infrastructural facilities (especially roads, power and energy supply), resulting in high operational cost due to huge investments in private electricity generation and transportation. We are aware that government is working very hard to solve the power problem. Again, the worsening state of insecurity in Nigeria, especially the sectarian violence in the North and kidnapping in the Southsouth and Southeastern, resulting in serious threat to lives and property, as well as resurgence of armed banditry and robberies, have hampered the operations of our members in these zones. Other challenges encountered by our members are late release of budgets, a highly politicised environment in which business and economic activities are carried out, resulting in some conflicting polices/goals that affect optimal efficiency in service delivery and advocacy. The timing of our budgets such as crafting, submission to the legislators for discussion and subsequent signing into law by Mr. President, and presentation to the nation require serious attention. A neat budget should reach the President by November while every ministry, department, and agency should receive their release in December to enable them start implementation in the coming year.

    How can the government meet the expectations of your members?

    Government can meet our expectations through the provision of adequate infrastructure, especially in power supply and transportation. There is, therefore, the need to accelerate the completion of the on-going power sector reforms to improve the generating power capacity of below 4000 Megawatts (MW ) to at least 10,000 MW by the end of the year. There is need to put in place an effective transport system management by providing adequate and reliable infrastructure for road, rail, air and waterways transportation in order to achieve supply chain efficiencies. All these we canvass should be done through effective PPP (Public-Private Partnership) synergy for optimal result to be achieved. There is  also the need to ensure efficient and effective security system that promotes business and investment climate, as well as guarantees lives and property of the citizens. The PPP model could be adopted by collaborating with NACCIMA and private security agencies to achieve a lasting solution to the war against crime, terrorism and other vices currently besetting our nation. Government should give serious consideration to dealing with institutions such as NACCIMA, Manufactures Association of Nigeria ( MAN), Nigeria Employers  Consultative Association (NECA), and  the  Nigerian Economic Summit Group (NESG) rather than individuals on all government committees critical to the growth and development of the industrial/business sector in the country. This can be achieved by making membership of Chambers of Commerce compulsory to all business operators, which would also serve a dual purpose of reducing or even eliminating fraudsters in the economy.

    How much employment has NACCIMA generated in recent times?

    Let me state clearly that membership of NACCIMA is made up of operators in the Small, Medium and Large Enterprises meant to create wealth, which in turn create jobs.  So, we only motivate them to create the jobs.

    The co-ordinating Minister of the Economy reportedly said the government was working hard to strengthen the income drive of the Nigeria Customs Service (NCS) and Federal Inland Revenue Service (FIRS). What is the implication of this to local industries, especially given the competition from imported goods?

    While we are not against strengthening NCS and FIRS, we, however, wish to state that Customs should not be seen as a revenue-generating agency of government, rather a trade facilitating agency. If this is done, it will enhance the competitiveness of local industries from imported goods. For FIRS, we support the strengthening by government as long as the enabling environment and additional incentives are provided for businesses to thrive and be better positioned to pay their taxes as and when due.

    How can export trade be encouraged for local manufacturers?

    The government should continue to identify and promote those products, which we believe Nigeria has competitive and comparative advantage of producing and exporting. Create additional incentives and with all the incentives made to work more transparently.

    What is the success level of the government’s port reforms?

    We are aware that considerable efforts have been made by the government on port reforms. However, the success level recorded is still low compared with the expected result, as the 24-hour target for cargo clearance process is not yet achieved. But we believe the government and her agencies could still do better.

    Has the government delivered on its backward integration programme in sugar, cement and cassava, among others?

    We can say with all sense of responsibility that some level of success has been achieved especially for cement. With regard to sugar, progress is being made and it will take some time, but we believe it will be another success story since N3 billion has been invested into the sector. On cassava, progress is still slow with rudimentary techniques still being adopted by most peasant farmers.

    What is the Chamber’s position on the fiscal policies and plans for the real sector?

    Our position is that they are good policies, but government should continue to have the political will to implement them transparently.

    The mortality rate of small businesses is rising by the day. How can this be curbed?

    Various factors account for the rising mortality rate of SMEs in the country, such as poor an enabling environment (lack of infrastructure, incentives, funding provided by government for businesses, financial mismanagement, lack of basic business capacity in terms of knowledge, skills & attitude). Others are non-recruitment of qualified personnel resulting in poor record keeping, especially accounting books, low capacity to invest in research and development (R&D), ICT (information and communications technology) and e-commerce, including lack of standardisation of products and limited access to markets. We believe the mortality rate of SMEs will reduce drastically if the NEDEP and the NIRP are implemented effectively.

    How has insecurity affected businesses in the northern part of the country?

    As a matter of fact, it is clear that the Agricultural Transformation Agenda of the Federal Government cannot be sustained or realised in a tensed atmosphere occasioned by insecurity in the North. No doubt, the insecurity in the North has had serious negative consequence on businesses operating in the region, as most of them have either shut operations or are relocating from the high-risk areas in the North. Business can only thrive in a conducive and peaceful environment, which would guarantee return on investment.

     

  • NACCIMA urges govt on export reforms

    NACCIMA urges govt on export reforms

    There is need for the government to revamp the nation’s export by formulating policies that will drive its development, the Director-General of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Dr John Isemede, has said

    He deplored the attitude of the people and the government towards its dwindling fortunes, adding that the sector holds a lot of promise for economic growth.

    To address some of its challenges, the NACCIMA boss called for the development of a strong value chain as well as an efficient commodity board, stressing that it is impossible to run a successful export market without a commodity board.

    He also called on the Federal Government to adopt policies that would propel agro-industrial and manufacturing in Nigeria.

    “There is the need to diversify and increase export of high value-added agro-allied and manufactured products, that depend on the natural resources which Nigeria has comparative and competitive advantage,’’ he said.

    He advised the government to remove bottlenecks that are incompatible with the attainment of the objectives.

    Isemed urged the National Assembly to speed up deliberations on this year’s Appropriation Bill.

    He said this would enable the executive arm of the government to implement projects for the benefit of the economy.

  • Chamber laments poor access roads

    The Nigerian Association of Chamber of Commerce, Industry, Mines and Agriculture (NACCIMA) has lamented persistent congestion on the ports’access roads, saying it is taking a toll on its members.

    The group said some of its members had been forced to close shop because of lack of access to their businesses.

    On a visit to the Apapa Port, Chairman of its Export Group, Oluyenuwo Olabisi said the congestion and long queue of vehicles were creating problems for the export group Containers, he said, were sometimes turned back, while most of the time, they miss appointment with their ships, leading to huge losses.

    He lamented that the concessionaires do not have enough capacity for containers, which is impacting negatively and resulting to the gridlock experienced in the transportation of the containers.

    Olabisi also called on the Port Manager, Nasir Mohammed, to address delays suffered by exporters, saying priority should be given to the exporters, as against empty containers that go into the ports.

    Chief Executive Officer, Harlink Investment Limited, Alhaji Inaolaji Nofiu, also called for greater efficiency of the port concessionaires, complaining that most of them do not have enough cargo capacity for export and empty containers.

    He called on the Nigerian Ports Authority (NPA) to check corruption at the ports, saying the vice is affecting the export business of their members.

    Responding, Mohammed called for a collaborative effort among all the stakeholders in the ports, saying the NPA is also worried about the congestion at the ports and the losses it occasioned for exporters.

    He said the agency is devising measures to check the congestion, adding that investigation has revealed that the congestion is occasioned by the failure of the shipping companies and terminal operators to provide holding bays for ships.

    He also decried the attitude of truckers that bring in containers even when they are not scheduled to enter the ports.

  • Senate endorses new auto policy

    Senate endorses new auto policy

    The Senate Committee on Trade and Investment yesterday tacitly endorsed the new Federal Government policy aimed at transforming the automotive industry.

    The committee met industry stakeholders at the National Assembly to aggregate the opinions of automotive industry players on the controversial reform policy.

    The committee’s Chairman Esther Nenadi Usman said the views expressed by stakeholders showed that everybody agreed with the new policy.

    Usman said her committee would ensure that the policy was implemented without imposing further burden on Nigerians.

    The senator said it was obvious, from the summation of presentations before the committee that “everyone agrees that the automotive policy was welcomed and the implementation accepted.”

    Usman added: “Everyone accepts that the policy would ensure that cars are manufactured and assembled in the country. But what everyone is saying is that all known sharp practices by operators before the date of implementation should be discouraged.”

    The Minister of Trade and Investment, Mr. Olusegun Aganga, allayed the fears of stakeholders.

    The minister assured that government would be fair to everyone in the implementation of the policy.

    He said: “It is normal to have teething problems, but the policy has addressed all the issues raised.”

    The minister explained that as part of government’s effort to ensure fairness, operators would be part of the monitoring committee to be set up.

    The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), however, requested the extension of the February 2014 implementation take off date for the new policy.

    It said this would enable operators in the industry to adjust.

  • NACCIMA holds council meeting

    NACCIMA holds council meeting

    THE importance of sustained relationship between government and the Chamber of Commerce Movement at various levels has been re-echoed by the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).

    This was reiterated by the association’s National President, Alhaji Mohammed Badaru Abubakar, at its quarterly Council Meeting in Uyo, Akwa Ibom State.

    He hailed Akwa Ibom State Governor

    Godswill Akpabio for good governance.

    The governor, who was presented with a Commendation Award for his uncommon infrastructural development in his state by the NACCIMA boss, said a deliberate policy of business and investment-friendly reforms and advanced infrastructural development have seen the state laying a solid foundation to move from a mostly civil service economy to an industrialised economy in collaboration with the Organised Private Sector.

    Akpabio told NACCIMA and its affiliates to consider setting up their businesses and investments in the state to industrialise Akwa Ibom for job creation and employment.

  • NACCIMA chief seeks agric revolution

    NACCIMA chief seeks agric revolution

    VICE President, Nigerian Chambers of Commerce, Industry, Mines and Agriculture, Chief Adebowale Omotoso, has advocated an agricultural revolution that will bring into play a careful combination of resources and other input for efficient and maximum production.

    Speaking at a forum yesterday in Oyo town, Oyo State, Chief Omotoso said the potential for agricultural production in Nigeria exists, lamenting that inability to fully tap the potentials was indicative that there is a structural defect within the production system.

    He said: “A structural transformation of our agricultural economy requires urgent attention if the country is to meet her future food and fibre requirements.

    “In this endeavour, our small-scale farmers who are still the linchpin of our agricultural development and are likely to remain so for the foreseeable future should form the central focus.”

  • ‘Implement 24-hour cargo clearance policy’

    A Council member of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Adams Idifueko has called for the implementation of the promised policy of 24-hour cargo clearance by the Federal Government.

    He said in Lagos that the country should address the reality as the issue of cargo congestion has remained unabated at our ports, compounded with multiple inspection and government’s agencies.

    He said the nation is almost missing the opportunity of being the sub-regional hub as clearing goods in Togo and Republic of Benin is 40 per cent cheaper.

    Idifueko said with Nigeria’s population estimated at over 170 million, importers should find the country’s ports attractive enough to do business.

    He said in Singapore, a 200,000 capacity ship takes just about two hours to clear while in Nigeria a 2,000 capacity ship takes 24 hours, adding that with that with this scenario, the nation can never be a preferred hub for cargo destination.

  • NACCIMA boss suggests export reforms

    NACCIMA boss suggests export reforms

    The Director-General of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Dr John Isemede, has impressed on the federal government the need to revamp the nation’s export sector by formulating policies geared towards driving development in the sector.

    Isemede, who made this appeal while speaking in an interview with The Nation recently, deplored the current dysfunctional attitude of the people and the government in the dwindling fortunes of the export market, adding that the sector holds a lot of promise as far as economic growth is concerned.

    To address some of the challenges besetting the sector, the NACCIMA boss called for the development of a strong value chain as well as an efficient commodity board, stressing that it is impossible to run a successful export market without a commodity board.

  • NACCIMA visits Niger

    The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has gone on a four-day trade mission to Niamey, the Niger Republic capital to strengthen trade ties.

    The delegation, led by NACCIMA’s National President, Alhaji Muhammad Abubakar visited the country for trade and business–to-business meetings.

    The focus of the delegation, according to a statement from the chamber, is various sectors.

    The delegation focused on real estate, transport & logistics (Inland Dry Port), agriculture, road construction, petroleum marketing, textiles and food processing during the visit.

    The delegation visited the Niger Republic Ministers of External Affairs, Cooperation and Diaspora, Bazoum Mohammed; his counterpart in the Ministry of Commerce and Private Sector Development, Saley Saidou and the Minister of Health, Lawali Chaibu .

    The delegation met with the Permanent Secretaries of the Ministries of Energy and Petroleum; Solid Minerals and Industries and the Director-General of Housing Development Corporation (Sonuci).

    On the delegation were – Ahmad Rabiu, a National Vice President of NACCIMA, Emeka Unachukwu, President, Port-Harcourt Chamber of Commerce, Elder Mike Fowowe, President, Ibadan Chamber of Commerce, Umar Farouk Rabiu, President Kano Chamber of Commerce and Dr Abdul Alimi, President, Kaduna Chamber of Commerce.