The Nation Newspaper

Tag: production

  • Forex threatens power production

    •Equipment cost soars by 90 per cent

    The imbalance in the foreign exchange (forex) market has hindered smooth operation by the nation’s power sector as dollar exchanged for about N470 at the parallel market, The Nation has learnt.

    Despite the implementation of the flexible exchange rate mechanism that allowed for sourcing of forex from multiple sources, operators in the sector are battling scarcity of dollars.

    It was gathered that firms, on account of high exchange rates, are unable to repay the loans they took to buy the assets of the Power Holding Company of Nigeria (PHCN) in 2013.

    Also, it is difficult for the firms to get enough dollars to import meters, transformers, and other materials needed to meet their obligations to customers.

    Industry sources said operators may be forced to further prune down the cost of operation if naira continues its free fall amid the recession in the economy, by downsizing the workforce and reducing output.

    The Group Leader Generation, Sahara Power Group, Micheal Uzoigwe, said the lopsidedness in the exchange rate was affecting activities in the industry.

    According to him, the high cost of foreign exchange has resulted in price increase of spare parts by 90 per cent. He  added  that the issue was having ripple effects on the sector and the economy,  explaining that output in the value chain has reduced to an abysmal level due to high cost of obtaining dollar in Nigeria.

    Uzoigwe said: “Getting enough dollars for transactions and achieving optimal capacity is a problem to electricity generation companies (GenCos). The reason is because the price of gas is denominated in dollar and that power generation companies are unable to get enough money to buy the product. He said firms were paying N165 per unit of gas two years and they are now paying between N460 to N470 for the same unit of gas in 2016, then there is a problem.

    “Two things are likely to happen. First, the GenCos would not be able to get enough millions of cubit of gas for generation. Secondly, the firms would find it extremely difficult to break even in the industry.”

    Uzoigwe said Sahara Power Group, bought Egbin power plant for $400million in 2013 when dollar exchanged for N165, adding that the Group now pays a lot to service the debt.

    “We at (Sahara Group) bought Egbin Power Plant for $400million few years ago. The Group took loans from the banks to buy the plant. Now we are repaying the loan. Given the fact that the value of dollar has increased greatly, the Group is paying more money to service the debt. The additional money that is being paid on the debt would have been channelled to a more productive usage,” he added.

    Also, the Chief Executive officer, MOMAS Nigeria Limited, Mr. Kola Balogun said operators across the value chain are struggling to survive in the face of bad economy.

    He said the woes of the operators have been compounded by the rise in the value of dollar in recent times, adding that companies are not recording growth because Nigeria runs an import-dependent economy.

    He said many operators in the sector rely on accessories imported from abroad for production, stressing that they spend a lot of money on production when cost of importation is factored in.

    Balogun asked: “Are we to talk of gas that its price is denominated in dollar? Are we to talk of pre-paid meters, sub-station equipment and other tools that are imported? Are we to talk of money spent on seeking partners abroad by power firms?”

    Balogun, whose firm manufactures meters said indigenous meter producers are having problems despite the fact that they are sourcing 60 per cent of their materials locally.

  • Oil prices fall on higher OPEC production

    Oil prices fall on higher OPEC production

    Oil prices fell yesterday after the Organisation of Petroleum Exporting Countries (OPEC) said its production had risen to the highest level in at least eight years and following reports of an increase in Inuted States (U.S.) crude stockpiles.

    Brent crude futures were trading at $51.46 per barrel at 0645 GMT, down 35 cents, or 0.68 per cent, from their previous close.

    U.S. West Texas Intermediate (WTI) crude was down 42 cents, or 0.84 per cent, at $49.76 per barrel.

    Traders said oil markets had come under pressure after the OPEC reported a rise in output, despite the cartel’s plans, potentially with non-OPEC producer Russia, to cut production in a bid to rein in a global glut.

    “Crude responded predictably, with both Brent and WTI falling,” said Jeffrey Halley of brokerage OANDA.

    OPEC had two days ago reported its oil production climbed in September to the highest in at least eight years, and raised its forecast for 2017 non-OPEC supply growth, pointing to a larger surplus next year despite the group’s proposal to cut output.

    The group pumped 33.39 million barrels per day (bpd) last month, up 220,000 bpd in August.

    “In the absence of any OPEC-Russia headlines to give crude its daily adrenaline shot, the market looks nervously to the Energy Information Administration (EIA) crude inventory figures due in the U.S. this evening,” Halley said.

    The EIA is due to publish official storage inventory data later yesterday.

    The private American Petroleum Institute reported two days ago that U.S. crude inventories rose by 2.7 million barrels to 470.9 million barrels in the week to Oct. 7. This would be the first rise in oil stocks following five straight weeks of declines.

    “Seasonally softer gasoline consumption, flagging demand from China and the return of refineries from maintenance will likely drive up global stock levels over Q4,” BMI Research said, but added that it did not see stocks returning to last year’s highs.

    But the market received some support from China, which imported record volumes of crude oil last month, eclipsing the U.S. as the world’s top buyer of foreign oil for the third time in a year, in a trend that could soon put the Asian nation at the top of the world’s oil import table permanently.

    China’s September crude imports rose 18 per cent from a year earlier to 33.06 million tonnes, or 8.04 million bpd on daily basis, customs data showed, compared with the U.S. four-week average of 7.98 million bpd.

  • UNIZIK goes into paint production

    UNIZIK goes into paint production

    To be a leading institution in entrepreneurship and knowledge, the Nnamdi Azikiwe University (UNIZIK) in Awka the Anambra State capital, has refurbished its Faculty of Physical Sciences for paint production.

    The first set of paints manufactured by the faculty was unveiled last week, to the delight of the staff and students.

    The Vice-Chancellor (VC), Prof Joseph Ahaneku, said the institution went into paint production to enable students practise what they learn and to promote entrepreneurship.

    According to him, the paints were being used in the ongoing renovation of the Faculty of Management Sciences. He added that the institution would soon go into commercial production of paints to boost quality and availability.

    In addition to being a citadel of learning, Ahaneku said universities should be seen as problem-solving institutions. Universities, he said, must identify the needs of the society and make efforts to provide solution by harnessing human and material resources.

    The VC revealed plans to establish a bakery in the school, saying it was in line with the entrepreneurial drive of the management.

    It would be recalled that the university made headlines recently through the Department of Mechanical Engineering, where students produced a Formula 1 car and a mini-bus.

    Ahaneku hailed the Federal and state governments for supporting the university to execute the landmark projects. He said the paint production was made possible by the support the institution received after it unveiled its plans.

  • Agric institute launches technology to boost production

    The Institute of Agricultural Research and Training (IAR&T) has launched the Integrated Soil Fertility Management (ISFM) technologies to boost crop production and improve farmers’ livelihood.

    The Executive Director, IAR&T, Prof Jams Adediran while launching the project in Ibadan for the Southwest, Southsouth Soil Health Consortium, said the decline in sol fertility in the Southwest and in Nigeria as a whole has resulted to poverty.

    According to him, the present methods have limitation that  cannot support sustainable crop production.

    “There is need for a paradigm shift from conventional methods to adopted proven technologies using integrated approach. ISFM is a set of soil fertility management practices that necessarily include the use of fertiliser, organic imputs and improved germplasm combined with the knowledge on how to adapt these practices to local conditions, aiming at optimising agronomic use efficiency of the applied nutrients and improving crop productivity.

  • Kaduna to boost food production

    Kaduna to boost food production

    Kaduna State Government is determined to  help farmers improve their incomes and enhance food security.

    The government is committed to addressing challenges of milk production and marketing, so that more farmers can benefit from the  growing dairy sector.

    The Commissioner for Agriculture, Manzo Maigan, said this during the Business of Agriculture Conference on Victoria Island, Lagos.

    Maigan said the  government  would  promote good farming practices and train farmers on a variety of improved methods.

    As part of its strategy, the  commissioner said the government was seeking to promote agribusiness partnerships to tackle low farm productivity and limited market access  peding the development of the sector.

    Maigan said: “The most important thing is to create an enterprise in agriculture. Then, it must be profitable by making sure farmers produce at low cost and make profit. All the while, we have not been able to do that because we have not standardised farm practice. That explains why our produce falls short of global standards.”

    Maigan said the government was determined to support livestock keepers to increase productivity and counter escalating costs and marketing problems.

    He said: ”They have to be taught that it is not the number of animals that they keep but their productivity; if one has 100 cows that translate to 1.5 litres of milk per day, they can get a cow that gives them 30 litres or as much as 50 litres per day per cow. Even if the productivity is increased by 8.5 litres to 10 litres, management becomes easy even with as less as 10 cows. Lesser grass is grown. Like in Kaduna, we were able to bring in nutritious grass from Brazil, and within six weeks, milk output has increased from 1.5 to 3.5 litres per day.

    “We are also looking at artificial insemination, whereby we will bring the semen of improved cows and inseminate them with local cows to produce hybrid,” he added.

    He said the state was encouraging commercial pasture development to grow grass for sale, adding that grass was big business, as some countries export grass.

  • Kaduna farmers get rice seeds to boost production

    A kano-based company,  Popular Farms and Mills, in collaboration with Kaduna State Ministry of Agriculture and Rural Development, has distributed certified rice seeds to 400 local farmers in the state to boost rice production . The rice seeds were distributed to the farmers at a subsidised price.

    The seeds were distributed in the presence of Kaduna State Commissioner for Agriculture Daniel Maigari Manzo. Popular Farms General Manager AmitRai, who distributed the seeds, said his company was ready to solve the rice farming problem in Nigeria by motivating the local farmers to plant more rice in the state.

    “We have the technical advancement and the chemical advisory method to address the rice farming problem in the state and in Nigeria. We are here to help your local farmers to plant more rice in the country,” said Manzo.

    He also added that the company has introduced farming schools where local farmers can acquire knowledge about modern techniques of rice production. Manzo noted that local farmers need to embrace commercial farming.

    Popular Farms and Mills has been working with the Competitive African Rice Initiative (CARI) to integrate 20,000 rice farmers into sustainable and competitive business models that will lead to increased paddy production as well as improvements in quality.

  • ‘Future of the economy is production, export’- Shehu Sani

    ‘Future of the economy is production, export’- Shehu Sani

    Senator Shehu Sani, representing Kaduna state said the future of Nigerian economy is no longer depended on oil but making all effort to begin production and exportation as the economy is moving with speed towards exportation.

    The Senator disclosed this during a visit with local investors to the  Executive Director/CEO Nigerian Export Promotion Council, NEPC in Abuja, stating that individuals with entrepreneur spirit should begin to think of what they can do by way of production and exportation so the government will assist them.

    He said, “Nigerian entrepreneurs should gear towards producing and packing goods that will attract foreign currency. The key to Nigeria diversification is export.

    “When we are going into the field of export we are going into a very competitive field of political economy. As much as we are diversifying we have to harness our potentials and use it to better the economy. NEPC is the brain box of the economy so we have to work closely with the council.”

    The Executive Director/ CEO Nigeria Export Promotion Council, NEPC, Segun Awolowo said oil cannot drive the GDP because it is only 10%, what will drive the economy effectively is agriculture which the government is seriously venturing into.

    “For diversification to be effective our products must be competitive enough to compete with other products in the international markets and that is what we at the council are working towards. We have to make agriculture work by paying more value to agricultural products

    “Agricultural products constitute the bulk of Nigeria’s non-oil exports. The shares of these products both processed and unprocessed in total value of non-oil export is as high as 70%.“

    Awolowo said good market penetration and effective packaging on the part of the exporters as well as adequate financing from banks and government among others would be keys to achieving export competitiveness.

     

  • Porsche announces production launch of 718 Cayman

    Assembly of the new Porsche 718 Cayman is underway in Germany with the comprehensively redeveloped mid-engine sport coupé now boasting more power, increased torque, a higher top speed and a stylish redesign.

    Ahead of its arrival, the new entry-level model for Porsche is being produced at the brand’s historic headquarters in Zuffenhausen.

    The milestone announcement comes soon after the introduction of the newly designated and revolutionised 718 Boxster of which the 718 Cayman features the same new four-cylinder flat engines with turbocharging. The result is a 25 hp increase in both the 718 Cayman and 718 Cayman S when compared to their predecessors.

    “The production launch of the Cayman successor models was executed to our full satisfaction,” says Albrecht Reimold, Executive Board Member for Production and Logistics at Porsche AG.

    “After the successful launches of the new 911 at the end of last year and of the new 718 Boxster this year, the team in Zuffenhausen also handled this production launch impeccably. This is further proof that our employees work with perfection and passion on a daily basis to enable a very special Porsche experience for our customers,” Reimold said.

     

    The entry-level 718 Cayman is driven by a newly developed, two-litre, 300 hp engine with innovative turbocharging. The substantial torque increase of 35 per cent in the new engine of the base model promises driving fun and agility with a maximum of up to 380 Newton metres. Featuring a turbocharger with variable turbine geometry (VTG), the 718 Cayman S boasts 2.5 litres of engine displacement and 350 hp, with maximum torque at 420 Newton metres.

    When equipped with Porsche Doppelkupplungsgetriebe (PDK) and Sport Chrono Package, the 718 Cayman accelerates from zero to 100 km/h in 4.7 seconds, whilst the S-version achieves the same in 4.2 seconds.

  • ‘Research can boost poultry, animal production’

    For poultry and animal production to be viable, they must be research-driven, an expert, Dr Olugbenga Ogunwole has said.

    Ogunwole of the Department of Animal Science, University of Ibadan, spoke  during a a workshop by the Poultry Association of Nigeria (PAN) in Ibadan.

    The poultry sector, he said, is one of the sustainable and decent employers of labour in Nigeria, and has a predictable and high return on investment across the value chain of breeding, production, feeding production and supply chains.

    Ogunwole, however, said challenges of the poultry production sector, such as vagaries of weather, poor elasticity of production, high cost of poultry feeds and vaccination, poor production efficiency, sub-standard inputs and activities of quacks parading themselves as professionals, among others, had encumbered the growth of the sector and hence the economy.

    On how the sector could boost the economy, especially in hard times, Ogunwole said affordable labour, high demand for eggs, poults and increasing demand for cheaper sources of protein as the population increases and urban dwellers surges were factors energising the poultry industry to contribute to the local production, processing and utilisation of the products.

    As the way forward, he suggested a strategy to make the industry competitive – effective linkage with research institutes and new technologies like the one between the Hebrew University of Jerusalem and the Israeli poultry farmers.

    Speaking on the theme, ‘Enhancing Nigerian economy through poultry,’Oyo State P oultry Association of Nigeria (PAN) Chairman, Mr Olabanji Akanji, said poultry has great potential for revamping the economy if given the needed attention by stakeholders.

    “While we covet and plead for massive government support for the industry, we cannot but keep investing in the industry in our own little way as individuals for all these have effects on the nation’s economy.

  • Foreign investors partner Agric College on cassava production

    The Provost, Federal College of Agriculture, Akure, Dr Adeola Odedina, has said the college is partnering with foreign investors to create millions of value chain jobs in cassava production.

    Odedina spoke in Akure on Wednesday during the Cassava Adding Value for Africa Phase ll (CAVA ll) Project’s International Farmers’ Field Day.

    He said the college would support the Federal Government‘s investment in agriculture, aimed at employment generation, food security, poverty alleviation and provision of raw materials for industries.

    “We have four African countries with an investor partnering with us on Cassava Adding Value Chain for Africa phase ll (CAVA). These are Malawi, Ghana, Uganda and Tanzania and Bill Melinda Gates Foundation.

    The programme is to showcase the positive effect of best and recommended practice in cassava production enterprise”.

    Odedina said cassava national average yield is about eight to 10 tonnes per hectare with the possibility of farmers obtaining between 20 to 25 tonnes per hectare if trained. He however, said it is far below the potential of the crop if well managed.

    He projected that farmers and investors would witness unprecedented yield in cassava to as much as  60 tonnes per hectare. On how this will be achieved he said the strategy would be achieved through crop management options that are within the reach of the farmers.

    He expressed the hope that the steps being taken would lead to increase in production at low cost as well as encourage youths to embrace agriculture.

    According to him, the college is grateful to cassava Adding Value for Africa phase ll (CAVA) Project and its donors, Bill & Melinda Gates Foundation, for tapping into college experience in cassava sector in uplifting its project.

    He noted that the college had joined a high yielding and disease-resistant varieties with modern technology of cassava processing, which are meant for farmers and processor in Ondo State and surrounding states.

    “Over 40 per cent of 8,500 vocational training graduates in recent years have benefited from the college experience in cassava value chain opportunities, “ he noted.

    A team of delegates from Uganda led by Mr Tony Ijala, said  the new technology idea gathered in Nigeria would be fully implemented in his country.

    Noting  that the technology would improve cassava production in the east African nation.

    Ijala, who stated that Uganda has a lot of challenges which include tackling cassava diseases, added that Nigeria has always been of assistance to Uganda.

    Also, Mrs Chikumbeni Grace, who led the team from Malawi, lauded the programme and promised to take the new idea to her country.

    She expressed the hope that the new idea would assist Malawian farmers to increase their output in cassava production.