The Nation Newspaper

Tag: production

  • KIA Lagos Plant increases production

    KIA Lagos Plant increases production

    Kia Motors Nigeria has unveiled a new assembly plant, United Vehicle Assembly Limited (UVAL), in Lagos to produce 25,000 vehicles per year.

    UVAL’s Chief Executive Officer, Mr Jacky Hathiramani, said the company is committed to making Nigeria a leading auto manufacturing country in Africa. It will also contribute to the development of the nation through the multi-billion naira plant.

    The plant, according to him, has employed engineering graduates from Nigerian universities and will continue to provide employment for Nigerians.

    “With the opening of our plant in Lagos, we have taken our growth commitment to a greater height in Nigeria and reposition our brand to the teeming publics by supporting the proudly Nigeria dream,” he said.

    Kia Motors Nigeria Chief Commercial officer, Sandeep Malhotra, said the stride of Kia brand in Nigeria has continued to outpace competitions in offering the best in class automotive technology to its customers.

    According to him, the company is looking at further strengthening its foothold and expanding its reach in the Nigerian market with the new plant.

    The company recently launched its made-in-Nigeria vehicles, which include Kia Rio, Cerato, Optima, Sorento, Soul, promising to come up other models before the end of the year.

    During a working visit to the assembly plant, Minister of Industry, Trade and Investment, Dr Olusegun Aganga expressed his delight on the successful completion of the new plant.

    Aganga said: “I am pleasantly surprised at the level of success and the advance technology of this plant. I have visited different auto assembly plants across the globe and I can tell you that with the level of the quality assurance control and the sophistication of the equipment of this assembly plant, it can compete with international standard.”

     

  • Local oil firms’ production hits 300,000bpd

    Local oil firms’ production hits 300,000bpd

    Indigenous players in the exploration and production (E&P) value chain of the oil and gas industry account for 300,000 out of  the about 2.2 million barrels (bbls) of oil produced daily in the country, it was learnt.

    The daily production, according to data, is supposed to be between 2.4 million barrels and 2.5 million barrels per day (bpd), but owing to vandalism and oil theft, the volume sometimes drops to 2.1 million bpd.

    The Chairman/Chief Executive Officer of Waltersmith Petroman Oil Limited, an indigenous E&P firm, Mr. Abdulrazaq Isa, who spoke on the sideline of an oil and gas event in Abuja, said local players are driving production growth, adding that there was need for government to support them.

    He said the Nigerian Content Development and Monitoring Board (NCDMB) should support the growth of indigenous E&P firms by urging the international oil companies (IOCs) to release assets (oil fields) they consider commercially less viable or low producing fields to the local companies to encourage them make more investments.

    Isa said flow stations and gas stations have been built and they are just there unused or under-used. NCDMB collaboration with the IOCs, according to him, will ensure that percentage production matches that of reserves, improve cash flow which will be deployed to construction of refineries. IOCs develop oil and gas for their countries, let’s do the same here, he added.

    Indigenous operators also said the Local Content Act has given local production and contribution in the oil and gas sector a great deal adding that 20 per cent or more of the oil reserves is held by the independents, which is between nine and 10 billion barrels.

    Before 2010, when the Nigerian Content Act came into effect, only a few indigenous firms were producing oil and the percentage contribution from the locals to the total daily production was less than seven percent but, indigenous E&P firms contribute well over 11 per cent to daily national output.

    Waltersmith is the operator of the Ibigwe marginal field, which is located in the Oil Mining Lease (OML) 16. It was awarded to Waltersmith about two years ago, with a farm-in agreement with Shell Petroleum Development Company (SPDC) signed in April 2004. The company has built a 15,000 bpd capacity flow station.

    The company also said it was considering building a 5,000 bpd capacity at Ohaji-Egbema in Imo State, where the Ibigwe field is located to make petroleum products available in the country. The refinery, according to Isa, is expected to cost about $40 million.

  • African oil producers seek production cut

    The African Petroleum Producers Association (AAPA), which represents oil and gas producers from Algeria to South Africa, have called for a cut in oil output globally.

    The group also includes the continent’s biggest producers, Nigeria and Angola. It’s starting an initiative, led by Angola and Algeria, to seek collaboration between members of Organisation of Petroleum Exporting Countries (OPEC) and other oil producers to reduce output and stabilise oil prices, which have halved since the end of June.

    APPA wants “to set up a platform of commitment at the international level from the producing countries,” said Ousmane Doukoure, director of exploration and production at Ivory Coast’s oil ministry, as he read out a statement at the end of an APPA meeting in Abidjan, Ivory Coast’s commercial capital.

    African countries from Angola to Nigeria to Equatorial Guinea have had to cut their budgets in recent months after the plunge in oil prices affected the amount of income they will get from their biggest exports. Countries, including the continent’s biggest economy Nigeria, have slashed growth forecasts.

    “We are very concerned by the drop of the price,” said Gabriel Lima Obiang, oil minister for Equatorial Guinea, after the meeting. “We are revising already our budget because of the price and we have been welcoming an initiative by Angola and Algeria to study a way we can work together to stabilize the price in the future.”

    Of the African producers only Algeria, Libya, Nigeria and Angola are members of OPEC. While some members of OPEC have called for an output cut the biggest producer in the organization, Saudi Arabia, is opposing any reduction in output.

    “The current prices are unfair and are having an impact on the economies of African countries,” Mashallah Zwai, oil minister for the Tripoli-based Islamist government in Libya, said through an interpreter. “We will ensure our voice is heard about this crisis so as to emerge from it as soon as possible.”

    Zwai said Africa accounts for about 8 percent of global oil production.

    Libya is split with a separate government, based in the Eastern town of Tobruk, recognised by the United Nations (UN).

    “It has been a drastic reduction” in the oil price, Obiang said. “What we need to do is think of new initiatives, for example the diversification of our economies, so as we don’t depend on oil.”

    Nigeria, Africa’s biggest oil producer, relies on the commodity for over 90 per cent of its export income.

    Brent crude oil traded at $54.95 a barrel on Thursday. Its lowest level since June was $46.59 on Jan. 13.

     

  • Trade Hub to boost cashew nut production

    The West Africa Trade Hub of the  United States Agency for International Development (USAID) has earmarked over US$150,000 to help finance processing raw cashew nuts to increase regional trade competitiveness, improve food security, and reduce poverty over the next five years.

    The programme, which is in partnership with Cashew Alliance, is among other objectives, aimed at boosting international exports, jobs, and investments; and also to promote broader, more sustainable growth by improving both the private sector’s capacity and policies, rules and practices that govern regional and external trade.

    It will also increase regional trade in key commodities through more value added exports: shea, cashew, mango, rice, maize, millet/sorghum, livestock — cattle, and small ruminants.

    Value Chain Development Team Lead of the Trade Hub, Mr. William Bill Noble, said  in Accra, at a workshop organised for finance-access facilitators from some selected African countries and aimed at training them to secure finance and investment for firms to help increase the level of transformation in the processing of raw nuts to add-value — said: “We are going to provide financing to promote cashew nut processing in the region through approval of business plans and proposals. It is a trade project working with processors to add value to such commodities.”

    There are over 40,000 metric tonnes (mt) of raw cashew nuts produced in the country, all in rural areas creating employment for thousands, with women in the majority, and export figures averaging 80,000mt: with inflows from Cote d’Ivoire, Burkina Faso and Benin going to major destinations such as India, Vietnam and Brazil.

     

  • Still on Agric production and cooperatives

    SIR: The agricultural sector is one of the most important components of the economy. Its importance cannot be over-emphasised as productive agriculture offers many benefits: food for domestic consumption; raw materials for agro – allied industries; employment that generates income, which in turn encourages other industrial, commercial and service activities and export markets for foreign exchange earning.

    Indeed, agriculture has made significant impacts on Gross Domestic output until the oil boom era of the 1970s and early 1980s, when there was change in emphasis away from agriculture.

    The production of agricultural crops and livestock has not kept pace with population growth and rising demand. Thus, there is the need to prioritise rapid agricultural production to achieve national food security, especially as the country is endowed with immense human, natural and agricultural resources.

    • Abolarin Tayo

     Kwara state university      

  • Cocoa production could drop, experts predict

    Cocoa production could drop, experts predict

    Nigeria and her counterparts in West Africa could be set for another strong drop in cocoa production due to unfavourable weather and dry weather condition, President, Federation of Agriculture Association of Nigeria (FACAN), Dr Victor Iyama, has said.

    Speaking with The Nation, Iyama said, except there is an improvement in the rainfall situation, the sector could record a drop in output , adding that regular rainfall is always a forerunner to a fruitful new season.

    According to him, the hope of high production is being threatened by the likelihood of poor weather this year, adding that this could cause severe climate fluctuations and harm cocoa crops.

    Though,  some rainfall have been recorded early this year, inadequate or lack of follow-up rainfall could hamper crop growth.

    Weather condition, he said,  will be critical in determining if the crop, will result in a disappointing harvest.

    Chief  Executive, Centre for Cocoa Initiative, Mr Robo Adhuze expressed fears that lack of rainfall could reduce production, adding that  farmers have not had decent stocks in quantity or quality.

    He also said the industry is struggling with disease and pest infestations.

    To ensure that cocoa bean production increases, he called on the government to provide incentives for new cocoa growers to encourage small farmers return to its cultivation in view of the high demand.

    To bring the nation back to its enviable position  in cocoa production, Adhuze advised the government to support farmers by making available recommended cocoa chemicals and equipment at highly subsidised prices.

    According to him, there are opportunities in cocoa  for farmers and traders who can take advantage of its rising prices.

    The challenge, according to him, is that farmers are not realising enough incomes to encourage them to reinvest in their ageing and neglected plantations.

    Meanwhile, international dealers are watching the crop development in West Africa, where most of the world’s cocoa is produced.

    To them, the dry weather seems to be driving it, as supply and demand prospects pointed to a tightening market.

    The International Cocoa Organisation (ICCO) said cocoa market is expected to revert to a deficit in the current year as dry weather and dusty winds harm production.

    ICCO released its first forecast for the 2014/15 season and expects a supply and demand deficit of 17,000 metric tons (MT). It followed a small surplus in cocoa production of 30,000 MT in 2013/14, according to latest estimates. Production decline of 3 per  cent  is expected to drive the cocoa deficit for the current year.

    African cocoa production is projected to be hardest hit, while output in the Americas, Asia and Oceania is anticipated to be relatively flat.

    “The dusty seasonal Harmattan winds that blow southward from the Sahara Desert into West Africa from December to March were more severe than expected, while the dry hot weather conditions currently prevailing have been raising concerns for the mid-crop in the region,” said the ICCO in its Quarterly Bulletin of Cocoa Statistics.

    Cocoa grindings rose to 3.5 per cent in the previous year, but are expected to decline by 1.7per cent to 4,207 million MT in 2014/15.

    “In the 2014/2015 cocoa season the outlook for grindings seems less favorable, as large stocks of cocoa powder, low processing margins and moderate growth of demand for chocolate weighs on demand,” said the ICCO.

    Grinding are forecast to rise by 2 per cent  in Africa, but are expected to drop between 2-4 per cent  in every other region.

  • Nigerian Breweries, others to boost cassava production

    Nigerian Breweries, others to boost cassava production

    Nigerian Breweries Plc, Psaltry International Company Limited  and the International Fertiliser Development Centre (IFDC) have signed an agreement to optimise the cassava value chain and improve agribusiness for small farmers.

    The agreement is a collaboration between the parties to improve the output of small farmers, support economic development and promote inclusive growth in Africa.

    The partnership will enhance farmers productivity and increase supply of high-quality cassava roots to Psaltry, who will, in turn, provide industrial quality cassava starch for NB to extract maltose syrup for use in the brewing process.

    According  to a statement, the   agreement succeeds the Memorandum of Understanding (MoU) signed by the partners in June last year which formed part of the 2SCALE programme, a Dutch-funded initiative aimed at improving rural livelihoods and food security in Africa.

    The partners agreed to support small-scale farmers in the production of more and better cassava through technical assistance, training and easier access to finance. This will enable more small farmers to participate in the market for processed cassava byproducts required for large industrial purposes.

    The partnership also enhances NB’s  socio-economic contribution via the agricultural sector and supports the progress the company is making, towards the achievement of Heineken’s ambition to source 60 per  cent  of its agricultural raw materials in Africa locally by 2020.

    Managing Director of Nigerian Breweries, Nicolaas Vervelde,  said: “As an operating company of Heineken we have a long standing commitment to support local economic development and promote inclusive growth by sourcing agricultural raw materials from entrepreneurial local SME’s and utilising it in our operations. Through our partnership with Psaltry and IFDC, we are taking a big step towards further realising this ambition with cassava.”

    From June to December, last year, 2SCALE and Psaltry created awareness, mobilised and trained over 500 direct farmers who supplied more than 20,000 tons of cassava roots to Psaltry’s processing factory. Over 2,000 direct farmers are expected to benefit from the project within the next three years.

  • How to improve livestock production, by expert

    Nigeria will  improve its  livestock industry by  increasing its seed stock, building larger capacity slaughterhouses and launching information systems for animal identification and traceability, an  expert, Dr Ademola Adeyemo  has  said.

    Adeyemo, the Deputy Director, Directorate of General Administration, Agricultural and Rural Management Institute (ARMTI), stressed  the  need   to  increase the seed stock of commercial cattle which  could be  distributed to livestock farmers across the country.

    He  explained that  farmers were not making  much  because of the low proportion of pedigree animals , the low productivity of its commercial cattle population, small number of dedicated feedlots, and a lack of technical regulations for the production of livestock products  to meet world standards.

    While  cattle slaughter rate is increasing ,he  added that the number of  standard slaughter  houses are  small  to  take  care of  increasing  population  nationwide.

    According to him,  slaughter houses should be made  to  operate under international health and safety standards.

    He   said  operators  should  be  encouraged  to  use  modern technology, that could  led to higher-value product for  customers.

    With increased demand for beef, he  said   the cattle population has declined as farmers are having to sell more beef than is required to maintain or grow the population.

    He called  on the  government  to create favourable conditions for farm business, where raising cattle on a farm would be more beneficial than selling them, “and to import cattle population from other countries in order to achieve an increase in seed stock in the country” as soon as possible.

    With  insecurity in the North, he  said  the nation could experience  beef deficiency ,urging  the  government to raise  to the challenge  by  creating  the  conditions necessary for the development of the  cattle sector, which included low-cost feed production, high genetic potential and the availability of marketing outlets.

    In terms of genetic potential, he  said  the  sector  needs  to develop premium cattle, which is  key to the competitiveness and profitability of the sector.

  • Honeywell to integrate cassava flour in production

    The Managing Director and Chief Executive Officer, Honeywell Flour Mills  Mr. Olarewaju Jaiyeola has said  the company is ready to integrate the 10 per cent high  cassava yield flour  in its production process  in order to key into the Federal Government’s policy on cassava bread.

    Jaiyeola who spoke shortly after a media facility tour of the company in Lagos, said the policy has brought the Ministry of Agriculture closer to flour mailers in the country in a collaborative effort that has yielded  more economic benefits for the country at large especially in the area of employment generation.

    According to him, the government, for the first time, was able to support the policy with a holistic approach in terms of collaborative efforts with the private sector in the value laden chain that include the cassava farmers, the processors, the flour mailers and the master bakers which has been producing a wonderful result.

    The CEO noted that Honeywell Flour Mill has started with 2.5 per cent  cassava  flour inclusion in production with a view to increasing it to 10 per cent next year, adding that the gradual process is necessary in order to have a solid back up plan for greater performance in not too distance a future

    He said: “We believe so much in the policy and admired the bold step taken by the Minister of Agriculture and Rural Development, Dr Akinwumi Adesina by interacting with all the stakeholders in the industry with a clear vision and focus that it can no longer be business as usual syndrome that has crippled well intended policies in the past.”

    Jaiyeola who said though there were some challenges especially in the area of sourcing for raw materials, he noted that by the time all the value chains are operational such a problem will become a thing of the past.

    “As long as people are convinced about the policy and could see the turn over for those people that venture into it, more investors will come in and the multiplier effect will solve the problem of unemployment,” he said.

    He gave kudos to Dr Adesina for his doggedness, consistence, creativity and commitment despite bureaucratic bottleneck and other man-made challenges which will soon fizzle out with time as soon as all things are in place

    “Today we have a minister who sit on a table with us and ready to take the first step by providing 500 hectares of land in all the six processing machine states which has been allocated to flour mailers as a back up in order to solve the problem of raw material,” he said.

     

     

  • ‘Cotton production ‘ll revive textile industry’

    ‘Cotton production ‘ll revive textile industry’

    The General Manager, Agribusiness Development, African Cotton Company (WACOT), Mr. Pankaj Chawla,  has said a sustainable cotton production sector will help to revive the moribund textile industry.

    He said the Federal Government, through the Ministry of Agriculture and Rural Development, was doing its best towards reviving the industry by investing in the cotton value chain.

    Chawla, in an interview in Abuja, said the Ministry of Agriculture was working hard to revive the   industry.

    He said: “The Federal Government in its effort has  supported the cotton sector/ cotton value chain development.

    “The implication of a viable cotton industry in Nigeria is the resurrection of the textile industry to which the Federal Government distributes free cotton harvesting bags to farmers to reduce the contamination in cotton.

    “We started from 1250metric tons (mts) and now have up to 2500mts/3000 mt. And this I will say has stabilised the production and now a constant supply of cotton seed like other food crops is sustained and as demand comes we can always up scale it.

    “The important thing is to sustain the awareness and impact that has been created on cotton farmers towards ensuring continuity in the production of cotton.”

    The Federal Government had in 2012 signed a Memorandum of Understanding (MoU) with WACOT proposing a four-year seed multiplication plan to cover Katsina, Jigawa, Kano, Zamfara, Adamawa, Gombe, and Borno States respectively.

    The Minister of Agriculture and Rural Development, Dr Akinwumi Adesina, said the MoU is aimed at expanding the production of cotton from 200,000 hectares in 2012 to 250,000 hectares this year.

    Dr. Adesina said 105,307 cotton farmers across the 11 targeted states would benefit from the Growth Enhancement Support Scheme covering seeds and fertilisers.